Intuit Academy Tax Level 1 Exam Update 2025 /
2026 Questions & Answers with Rationales|
100% Correct | Grade.
1. Below the line deductions include Standard deduction
2. Eligible educators can deduct up to _______ of $250
qualified expenses paid during the tax year.
3. Which of the following is an ineligible medical Breast enhancement
expense for HSA, Archer MSA, and MA MSA?
4. The net capital gain is taxed at _______ if the 0%
married filing jointly taxpayer income is less than
$80,800.
5. To claim a child as a dependent, they must meet qualifying relative test
the qualifying child test or ________________.
6. Ordinary dividends are taxed at the same rate as ordinary
__________ income tax rate.
7. Distributions from HSA, Archer MSA, or MS MSA spent for qualified
are non-taxable when medical expenses of
________________________________________ your dependent
, _.
8. Which residency status is used when an individual Non-resident alien
is neither a U.S. citizen nor a resident alien for tax
purposes?
9. _____________ and ____________ are what Taxable income and
taxpayers must know to calculate their tax filing status
amount.
10. For mortgages entered into after December 15, 750,000
2017, the amount of interest the taxpayer can
deduct is no more than ______________ of the
debt used to buy, build, or substantially improve
their principal home and a second home.
11. __________ reduce the amount of tax due. Tax credits
12. Which form is for beneficiaries who get income Form 1041
from trusts and estates?
13. ___________________ consists of both earned Taxable income
and unearned income that is used to calculate the
tax. It is generally less than adjusted gross
income due to the deductions.
14. To satisfy the Substantial Presence Test, how 31
many minimum days (in the current year) must
you be physically present in the United States?
15. Complete the equation. ___________ = Selling Capital Loss or
, Price - Purchase Price Capital Gain
16. _________________ helps sole proprietorships Schedule C
calculate the profit or loss from a business while
also providing the IRS with your total business
income and deductions.
17. What type of deduction is a HSA contribution? Above-the-Line
Deduction Some of
the common
expenses on which
Above-the-Line
deductions are
available include:
Educator expenses
Early withdrawal
penalties of saving
accounts
Moving expenses
Business expenses
HSA contributions
Self-employment tax
Alimony payments
Tuition fees
Contributions to a
, traditional IRA
Student loan interest
deduction
Health insurance
premiums
Retirement account
contribution
18. As it applies to compensation income, the general where the service is
rule for sourcing wages and personal services performed The
income is controlled by general rule for
________________________________. sourcing wages and
personal services
income is controlled
by where the service
is performed. The
residence of the
recipient of the
service, the place of
contracting, and the
time and place of
payment are
irrelevant.
19. Which is considered non-taxable income? military personnel
2026 Questions & Answers with Rationales|
100% Correct | Grade.
1. Below the line deductions include Standard deduction
2. Eligible educators can deduct up to _______ of $250
qualified expenses paid during the tax year.
3. Which of the following is an ineligible medical Breast enhancement
expense for HSA, Archer MSA, and MA MSA?
4. The net capital gain is taxed at _______ if the 0%
married filing jointly taxpayer income is less than
$80,800.
5. To claim a child as a dependent, they must meet qualifying relative test
the qualifying child test or ________________.
6. Ordinary dividends are taxed at the same rate as ordinary
__________ income tax rate.
7. Distributions from HSA, Archer MSA, or MS MSA spent for qualified
are non-taxable when medical expenses of
________________________________________ your dependent
, _.
8. Which residency status is used when an individual Non-resident alien
is neither a U.S. citizen nor a resident alien for tax
purposes?
9. _____________ and ____________ are what Taxable income and
taxpayers must know to calculate their tax filing status
amount.
10. For mortgages entered into after December 15, 750,000
2017, the amount of interest the taxpayer can
deduct is no more than ______________ of the
debt used to buy, build, or substantially improve
their principal home and a second home.
11. __________ reduce the amount of tax due. Tax credits
12. Which form is for beneficiaries who get income Form 1041
from trusts and estates?
13. ___________________ consists of both earned Taxable income
and unearned income that is used to calculate the
tax. It is generally less than adjusted gross
income due to the deductions.
14. To satisfy the Substantial Presence Test, how 31
many minimum days (in the current year) must
you be physically present in the United States?
15. Complete the equation. ___________ = Selling Capital Loss or
, Price - Purchase Price Capital Gain
16. _________________ helps sole proprietorships Schedule C
calculate the profit or loss from a business while
also providing the IRS with your total business
income and deductions.
17. What type of deduction is a HSA contribution? Above-the-Line
Deduction Some of
the common
expenses on which
Above-the-Line
deductions are
available include:
Educator expenses
Early withdrawal
penalties of saving
accounts
Moving expenses
Business expenses
HSA contributions
Self-employment tax
Alimony payments
Tuition fees
Contributions to a
, traditional IRA
Student loan interest
deduction
Health insurance
premiums
Retirement account
contribution
18. As it applies to compensation income, the general where the service is
rule for sourcing wages and personal services performed The
income is controlled by general rule for
________________________________. sourcing wages and
personal services
income is controlled
by where the service
is performed. The
residence of the
recipient of the
service, the place of
contracting, and the
time and place of
payment are
irrelevant.
19. Which is considered non-taxable income? military personnel
