Intuit Academy Tax Prep – Level 1
Practice Exam Questions And Correct
Answers With Rationales
1. Which IRS form is used for an individual income tax return?
A. Form 944
B. Form 1120
C. Form 1040
D. Form W-4
Rationale: Form 1040 is the standard individual income tax return.
2. Which filing status generally provides the lowest tax rate?
A. Married filing separately
B. Single
C. Qualifying surviving spouse
D. Married filing jointly
,Rationale: MFJ typically receives the most favorable rates and highest
standard deduction.
3. Which document reports wages and federal withholding?
A. 1099-INT
B. 1099-NEC
C. W-2
D. Schedule C
Rationale: Form W-2 reports wages and withholding from an employer.
4. A dependent must meet which test?
A. Residency
B. Age
C. Support
D. All of the above
Rationale: All tests must be met to claim a qualifying dependent.
5. Which income is taxable?
A. Child support received
B. Gifts received
C. Life insurance death benefit
D. Unemployment compensation
Rationale: Unemployment is taxable income for federal purposes.
6. Standard deduction for a single taxpayer is:
, A. $5,000
B. $9,500
C. $14,600
D. $20,800
Rationale: Current law sets the single standard deduction at this amount.
7. Which form reports interest income?
A. 1099-NEC
B. W-2
C. 1099-INT
D. 1098-T
Rationale: Form 1099-INT reports interest income from banks or brokers.
8. Who must file a tax return?
A. Any person who receives a gift
B. Individuals with income above filing threshold
C. Anyone with a bank account
D. Only those receiving 1099s
Rationale: Filing requirements depend on income level, age, and filing
status.
9. Self-employment income is reported on:
A. W-2
B. Schedule C
C. Form 2441
Practice Exam Questions And Correct
Answers With Rationales
1. Which IRS form is used for an individual income tax return?
A. Form 944
B. Form 1120
C. Form 1040
D. Form W-4
Rationale: Form 1040 is the standard individual income tax return.
2. Which filing status generally provides the lowest tax rate?
A. Married filing separately
B. Single
C. Qualifying surviving spouse
D. Married filing jointly
,Rationale: MFJ typically receives the most favorable rates and highest
standard deduction.
3. Which document reports wages and federal withholding?
A. 1099-INT
B. 1099-NEC
C. W-2
D. Schedule C
Rationale: Form W-2 reports wages and withholding from an employer.
4. A dependent must meet which test?
A. Residency
B. Age
C. Support
D. All of the above
Rationale: All tests must be met to claim a qualifying dependent.
5. Which income is taxable?
A. Child support received
B. Gifts received
C. Life insurance death benefit
D. Unemployment compensation
Rationale: Unemployment is taxable income for federal purposes.
6. Standard deduction for a single taxpayer is:
, A. $5,000
B. $9,500
C. $14,600
D. $20,800
Rationale: Current law sets the single standard deduction at this amount.
7. Which form reports interest income?
A. 1099-NEC
B. W-2
C. 1099-INT
D. 1098-T
Rationale: Form 1099-INT reports interest income from banks or brokers.
8. Who must file a tax return?
A. Any person who receives a gift
B. Individuals with income above filing threshold
C. Anyone with a bank account
D. Only those receiving 1099s
Rationale: Filing requirements depend on income level, age, and filing
status.
9. Self-employment income is reported on:
A. W-2
B. Schedule C
C. Form 2441
