Intuit ACADEMY TAX Exam with accurate detailed solutions || || || || || || ||
Taxpayer A and Taxpayer B met in early December through an online app and decided to get
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married on December 31, 2021.What is an acceptable filing status?
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Yes/True. Married Filing Jointly Yes/True. Married Filing Separately || || || || || || || ||
A taxpayer needs assistance in determining their residency status for the current year The
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taxpayer is not a U.S. citizen but is treated as a resident alien for tax purposes. Is this statement
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true?
Yes/True. Since the taxpayer met the substantial presence test, they would be considered a
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resident for the current year. Yes/True. Since the taxpayer met the green card test, they would be
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considered a resident for the current year. || || || || || || ||
Josephine is a Canadian citizen and resident. She is not a US citizen, but was physically present in
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the USA for 170 days in the current year. She was in the USA for 30 days and 60 days in each of
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the previous two years. Will Josephine be considered a citizen or resident of the USA when
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applying the substantial presence test in the current year? || || || || || || || ||
Yes/True. She will qualify as she meets the substantial presence test with 190 days when applying
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the formula.
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Is this a test that individual must satisfy to be considered a qualifying child of a taxpayer?
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Yes/True. Relationship test Yes/True. Support test || || || || || ||
In the following scenario, is Form 1040 required to be filed for 2022?
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Yes/True. Taxpayer is single, has income of $6,000 and $300 of federal income taxes withheld.
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They want to claim the refund.
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Yes/True. Taxpayer is married filing jointly. Taxpayer has $80,000 in earned income and spouse
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has net profits of $40,000 from their sole proprietorship.
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Is the following statement correct about Form W-2?
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Yes/True. Box 1 provides the total of how much you were paid in wages, tips, and other
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compensation.
Is the following statement correct when calculating the individual federal income tax formula?
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Yes/True. Taxpayers subtract Above Line Deductions from Gross Income to determine
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Adjusted Gross Income. Yes/True. Taxpayers subtract Qualified Business Income from
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Adjusted Gross Income to determine Taxable Income. || || || || || || ||
, Taxpayer A is a student athlete in high school. They are being recruited by colleges to play soccer
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at a Division I school and are popular on several social media platforms. Taxpayer A provides
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social media advertisements for several businesses in the local area. Below is additional
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information for their current year. *Taken as a dependent on their parent's tax return || || || || || || || || || || || || ||
*Earned income of $7,500 for social media advertisements for local car dealership, restaurant,
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auto body shop and hair salon
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*Has $1,000 of business expenses related to the social media advertisements
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Is the following true about this scenario?
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Yes/True. The taxpayer will need to file Schedule C in their tax return. Yes/True. The taxpayer
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will have to pay self-employment tax.
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You are a 30 year old engineer working full-time. For the tax year 2022, you received the
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following: $35,000 Salary on W-2 $500 Dividend Income $200 Tax Exempt Interest Income || || || || || || || || || || || || ||
$1,000 Municipal Bond Interest Income Paid $7,000 in Real Estate Taxes Paid $2,500 for Home
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Mortgage Interest *Paid $1,000 in charitable contributions
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*Paid $2,500 in medical expenses || || || ||
Yes/True. Your taxable income is $23,500. || || || || ||
Is the following statement true with regard to a taxpayer's foreign income?
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Yes/True. US citizens are subject to tax on all income, whether its generated in the US or foreign
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countries. Yes/True. The US allows taxpayers meeting certain criteria to annually exclude an
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annual amount of foreign earned income. || || || || ||
Is the following income considered non-taxable?
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Yes/True. You received an inheritance of $10,000 Yes/True. You receive a gift of $10,000
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The taxpayer is a self-employed, cash-basis rideshare driver for Uber and Lyft. Should the
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following be included on their Schedule C? || || || || || ||
Yes/True. A cash tip from their customer. Yes/True. A payment made to have their car detailed
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A taxpayer has an upscale rideshare business. They earn a substantial amount of income by
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driving high net worth individuals, executives of companies and politicians around the city. Is this
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a business expense that can be deducted by the taxpayer?
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Yes/True. Interest charges of $900 for the loan on their Mercedes Sprinter. Yes/True. Credit
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card processing fees so the clients can pay using their credit cards instead of cash.
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A taxpayer is a sole proprietor who sells insurance. The taxpayer files a Schedule C, Profit/Loss
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from Business. Can the taxpayer deduct the following as a business expense in the current year?
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Taxpayer A and Taxpayer B met in early December through an online app and decided to get
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married on December 31, 2021.What is an acceptable filing status?
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Yes/True. Married Filing Jointly Yes/True. Married Filing Separately || || || || || || || ||
A taxpayer needs assistance in determining their residency status for the current year The
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taxpayer is not a U.S. citizen but is treated as a resident alien for tax purposes. Is this statement
|| || || || || || || || || || || || || || || || || || ||
true?
Yes/True. Since the taxpayer met the substantial presence test, they would be considered a
|| || || || || || || || || || || || || ||
resident for the current year. Yes/True. Since the taxpayer met the green card test, they would be
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considered a resident for the current year. || || || || || || ||
Josephine is a Canadian citizen and resident. She is not a US citizen, but was physically present in
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the USA for 170 days in the current year. She was in the USA for 30 days and 60 days in each of
|| || || || || || || || || || || || || || || || || || || || || || || ||
the previous two years. Will Josephine be considered a citizen or resident of the USA when
|| || || || || || || || || || || || || || || ||
applying the substantial presence test in the current year? || || || || || || || ||
Yes/True. She will qualify as she meets the substantial presence test with 190 days when applying
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the formula.
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Is this a test that individual must satisfy to be considered a qualifying child of a taxpayer?
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Yes/True. Relationship test Yes/True. Support test || || || || || ||
In the following scenario, is Form 1040 required to be filed for 2022?
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Yes/True. Taxpayer is single, has income of $6,000 and $300 of federal income taxes withheld.
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They want to claim the refund.
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Yes/True. Taxpayer is married filing jointly. Taxpayer has $80,000 in earned income and spouse
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has net profits of $40,000 from their sole proprietorship.
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Is the following statement correct about Form W-2?
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Yes/True. Box 1 provides the total of how much you were paid in wages, tips, and other
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compensation.
Is the following statement correct when calculating the individual federal income tax formula?
|| || || || || || || || || || || ||
Yes/True. Taxpayers subtract Above Line Deductions from Gross Income to determine
|| || || || || || || || || || ||
Adjusted Gross Income. Yes/True. Taxpayers subtract Qualified Business Income from
|| || || || || || || || || ||
Adjusted Gross Income to determine Taxable Income. || || || || || || ||
, Taxpayer A is a student athlete in high school. They are being recruited by colleges to play soccer
|| || || || || || || || || || || || || || || || || ||
at a Division I school and are popular on several social media platforms. Taxpayer A provides
|| || || || || || || || || || || || || || || ||
social media advertisements for several businesses in the local area. Below is additional
|| || || || || || || || || || || || ||
information for their current year. *Taken as a dependent on their parent's tax return || || || || || || || || || || || || ||
*Earned income of $7,500 for social media advertisements for local car dealership, restaurant,
|| || || || || || || || || || || || ||
auto body shop and hair salon
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*Has $1,000 of business expenses related to the social media advertisements
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Is the following true about this scenario?
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Yes/True. The taxpayer will need to file Schedule C in their tax return. Yes/True. The taxpayer
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will have to pay self-employment tax.
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You are a 30 year old engineer working full-time. For the tax year 2022, you received the
|| || || || || || || || || || || || || || || || ||
following: $35,000 Salary on W-2 $500 Dividend Income $200 Tax Exempt Interest Income || || || || || || || || || || || || ||
$1,000 Municipal Bond Interest Income Paid $7,000 in Real Estate Taxes Paid $2,500 for Home
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Mortgage Interest *Paid $1,000 in charitable contributions
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*Paid $2,500 in medical expenses || || || ||
Yes/True. Your taxable income is $23,500. || || || || ||
Is the following statement true with regard to a taxpayer's foreign income?
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Yes/True. US citizens are subject to tax on all income, whether its generated in the US or foreign
|| || || || || || || || || || || || || || || || || ||
countries. Yes/True. The US allows taxpayers meeting certain criteria to annually exclude an
|| || || || || || || || || || || || ||
annual amount of foreign earned income. || || || || ||
Is the following income considered non-taxable?
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Yes/True. You received an inheritance of $10,000 Yes/True. You receive a gift of $10,000
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The taxpayer is a self-employed, cash-basis rideshare driver for Uber and Lyft. Should the
|| || || || || || || || || || || || || ||
following be included on their Schedule C? || || || || || ||
Yes/True. A cash tip from their customer. Yes/True. A payment made to have their car detailed
|| || || || || || || || || || || || || || || ||
A taxpayer has an upscale rideshare business. They earn a substantial amount of income by
|| || || || || || || || || || || || || || ||
driving high net worth individuals, executives of companies and politicians around the city. Is this
|| || || || || || || || || || || || || ||
a business expense that can be deducted by the taxpayer?
|| || || || || || || || || ||
Yes/True. Interest charges of $900 for the loan on their Mercedes Sprinter. Yes/True. Credit
|| || || || || || || || || || || || || ||
card processing fees so the clients can pay using their credit cards instead of cash.
|| || || || || || || || || || || || || ||
A taxpayer is a sole proprietor who sells insurance. The taxpayer files a Schedule C, Profit/Loss
|| || || || || || || || || || || || || || || ||
from Business. Can the taxpayer deduct the following as a business expense in the current year?
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