1|Page
INTUIT ACADEMY TAX LEVEL 1 EXAM 2026/2027
ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALL
ANSWERED {335 Q & A} ALREADY GRADED A+ |
BRAND NEW!
Taxable Income Formula
Total Income - Tax Deductions - Total Exemptions - Total Rebate
Taxpayers can claim a Child Tax Credit of up to__________for
each child under age 17 in 2021(2022).
$3,600.00 Taxpayers can claim a CTC of up to $3,600 for each
child under age 17 in 2021(2022). Since 2021, qualifying families
may now receive up to $3,600 per child under the age of 5 and
$3,000 for those ages 6 to 17. That's up from $2,000 per child,
provided families fall under certain income thresholds (less than
$150,000 for couples and $112,500 for single parents).
The IRS requires you to keep detailed records of your gambling
winnings and losses as well as any related documents, including
receipts, tickets, payment slips, statements, and Form W-2G.
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You must be able to_____________________ _.
Report your gambling winnings and gambling losses. You may be
able to deduct your losses if you have itemized deductions.
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.
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______________ 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.
What amount of upper cap is applicable on business gifts?
$25 The upper cap of $25 is applicable on business gifts.
If yearly dividend amounts exceed __________, a Schedule B must
be completed and attached to Form 1040.
$1500 If yearly dividend amounts exceed $1500, a Schedule B
must be completed and attached.
The are _________ filing statuses.
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five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
Michael worked as an IT Technician and did contract work
creating websites for small businesses. Michael received a W-2
for his IT technician job but didn't receive a 1099-MISC form for
his contract work.
Does Michael still need to report all of his income?
Yes
Adam Clark is a freelance voiceover artist, he's paid between
$2,000 to $4,000 per year. He has full-time job in accounting,
where he makes $85,000 per year. Should Adam report the
income he receives as a voiceover artist?
INTUIT ACADEMY TAX LEVEL 1 EXAM 2026/2027
ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALL
ANSWERED {335 Q & A} ALREADY GRADED A+ |
BRAND NEW!
Taxable Income Formula
Total Income - Tax Deductions - Total Exemptions - Total Rebate
Taxpayers can claim a Child Tax Credit of up to__________for
each child under age 17 in 2021(2022).
$3,600.00 Taxpayers can claim a CTC of up to $3,600 for each
child under age 17 in 2021(2022). Since 2021, qualifying families
may now receive up to $3,600 per child under the age of 5 and
$3,000 for those ages 6 to 17. That's up from $2,000 per child,
provided families fall under certain income thresholds (less than
$150,000 for couples and $112,500 for single parents).
The IRS requires you to keep detailed records of your gambling
winnings and losses as well as any related documents, including
receipts, tickets, payment slips, statements, and Form W-2G.
,2|Page
You must be able to_____________________ _.
Report your gambling winnings and gambling losses. You may be
able to deduct your losses if you have itemized deductions.
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.
,3|Page
______________ 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.
What amount of upper cap is applicable on business gifts?
$25 The upper cap of $25 is applicable on business gifts.
If yearly dividend amounts exceed __________, a Schedule B must
be completed and attached to Form 1040.
$1500 If yearly dividend amounts exceed $1500, a Schedule B
must be completed and attached.
The are _________ filing statuses.
, 4|Page
five There are five filing statuses.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er)
Michael worked as an IT Technician and did contract work
creating websites for small businesses. Michael received a W-2
for his IT technician job but didn't receive a 1099-MISC form for
his contract work.
Does Michael still need to report all of his income?
Yes
Adam Clark is a freelance voiceover artist, he's paid between
$2,000 to $4,000 per year. He has full-time job in accounting,
where he makes $85,000 per year. Should Adam report the
income he receives as a voiceover artist?
