Intuit Academy Tax Level 1 Exam with accurate detailed solutions
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Below the line deductions include
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Standard deduction ||
Eligible educators can deduct up to _______ of qualified expenses paid during the tax year.
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$250
Which of the following is an ineligible medical expense for HSA, Archer MSA, and MA MSA?
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Breast enhancement
||
The net capital gain is taxed at _______ if the married filing jointly taxpayer income is less than
|| || || || || || || || || || || || || || || || || ||
$80,800.
0%
To claim a child as a dependent, they must meet the qualifying child test or ________________.
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qualifying relative test || ||
Ordinary dividends are taxed at the same rate as __________ income tax rate.
|| || || || || || || || || || || ||
ordinary
,Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
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_________________________________________.
spent for qualified medical expenses of your dependent
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Which residency status is used when an individual is neither a U.S. citizen nor a resident alien for
|| || || || || || || || || || || || || || || || || ||
tax purposes?
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Non-resident alien ||
_____________ and ____________ are what taxpayers must know to calculate their tax amount.
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Taxable income and filing status
|| || || ||
For mortgages entered into after December 15, 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.
|| || || || || ||
750,000
__________ reduce the amount of tax due. || || || || || ||
Tax credits
||
Which form is for beneficiaries who get income from trusts and estates?
|| || || || || || || || || || ||
Form 1041 ||
,___________________ consists of both earned and unearned income that is used to calculate the || || || || || || || || || || || || || ||
tax. It is generally less than adjusted gross income due to the deductions.
|| || || || || || || || || || || ||
Taxable income ||
To satisfy the Substantial Presence Test, how many minimum days (in the current year) must you
|| || || || || || || || || || || || || || || ||
be physically present in the United States?
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31
Complete the equation. ___________ = Selling Price - Purchase Price
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Capital Loss or Capital Gain || || || ||
_________________ helps sole proprietorships calculate the profit or loss from a business while || || || || || || || || || || || || ||
also providing the IRS with your total business income and deductions.
|| || || || || || || || || ||
Schedule C ||
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 || ||
As it applies to compensation income, the general rule for sourcing wages and personal services
|| || || || || || || || || || || || || || ||
income is controlled by ________________________________.
|| || || ||
where the service is performed The 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.
|| || || || || || || || || || ||
Which is considered non-taxable income?
|| || || ||
military personnel allowances Payments received as a member of military service are generally
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taxed as wages except for retirement pay, which is taxed as a pension. Allowances generally aren't
|| || || || || || || || || || || || || || ||
taxed.
||
______________ is used to offset income and payroll taxes for low-income workers and to || || || || || || || || || || || || || ||
provide an incentive to work. || || || ||
Earned Income Tax Credit Earned Income Tax Credit is used to offset income and payroll taxes
|| || || || || || || || || || || || || || || ||
for low-income workers and to provide an incentive to work.
|| || || || || || || || ||
Which is a non-deductible business expense?
|| || || || ||
family vacation Expenses done for personal and recreational purposes are personal expenses and
|| || || || || || || || || || || || ||
are non-deductible.
||
|| || || || || || || || ||
Below the line deductions include
|| || || ||
Standard deduction ||
Eligible educators can deduct up to _______ of qualified expenses paid during the tax year.
|| || || || || || || || || || || || || ||
$250
Which of the following is an ineligible medical expense for HSA, Archer MSA, and MA MSA?
|| || || || || || || || || || || || || || ||
Breast enhancement
||
The net capital gain is taxed at _______ if the married filing jointly taxpayer income is less than
|| || || || || || || || || || || || || || || || || ||
$80,800.
0%
To claim a child as a dependent, they must meet the qualifying child test or ________________.
|| || || || || || || || || || || || || || ||
qualifying relative test || ||
Ordinary dividends are taxed at the same rate as __________ income tax rate.
|| || || || || || || || || || || ||
ordinary
,Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
|| || || || || || || || || || ||
_________________________________________.
spent for qualified medical expenses of your dependent
|| || || || || || ||
Which residency status is used when an individual is neither a U.S. citizen nor a resident alien for
|| || || || || || || || || || || || || || || || || ||
tax purposes?
||
Non-resident alien ||
_____________ and ____________ are what taxpayers must know to calculate their tax amount.
|| || || || || || || || || || || ||
Taxable income and filing status
|| || || ||
For mortgages entered into after December 15, 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.
|| || || || || ||
750,000
__________ reduce the amount of tax due. || || || || || ||
Tax credits
||
Which form is for beneficiaries who get income from trusts and estates?
|| || || || || || || || || || ||
Form 1041 ||
,___________________ consists of both earned and unearned income that is used to calculate the || || || || || || || || || || || || || ||
tax. It is generally less than adjusted gross income due to the deductions.
|| || || || || || || || || || || ||
Taxable income ||
To satisfy the Substantial Presence Test, how many minimum days (in the current year) must you
|| || || || || || || || || || || || || || || ||
be physically present in the United States?
|| || || || || ||
31
Complete the equation. ___________ = Selling Price - Purchase Price
|| || || || || || || || ||
Capital Loss or Capital Gain || || || ||
_________________ helps sole proprietorships calculate the profit or loss from a business while || || || || || || || || || || || || ||
also providing the IRS with your total business income and deductions.
|| || || || || || || || || ||
Schedule C ||
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 || ||
As it applies to compensation income, the general rule for sourcing wages and personal services
|| || || || || || || || || || || || || || ||
income is controlled by ________________________________.
|| || || ||
where the service is performed The 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.
|| || || || || || || || || || ||
Which is considered non-taxable income?
|| || || ||
military personnel allowances Payments received as a member of military service are generally
|| || || || || || || || || || || || ||
taxed as wages except for retirement pay, which is taxed as a pension. Allowances generally aren't
|| || || || || || || || || || || || || || ||
taxed.
||
______________ is used to offset income and payroll taxes for low-income workers and to || || || || || || || || || || || || || ||
provide an incentive to work. || || || ||
Earned Income Tax Credit Earned Income Tax Credit is used to offset income and payroll taxes
|| || || || || || || || || || || || || || || ||
for low-income workers and to provide an incentive to work.
|| || || || || || || || ||
Which is a non-deductible business expense?
|| || || || ||
family vacation Expenses done for personal and recreational purposes are personal expenses and
|| || || || || || || || || || || || ||
are non-deductible.
||
