INTUIT ACADEMY TAX LEVEL 1 COMPREHENSIVE
STUDY GUIDE EXAM QUESTIONS WITH CORRECT
ANSWERS LATEST UPDATE
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
Page 1 of 97
,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
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
Page 2 of 97
,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
___________________ 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
Page 3 of 97
, _________________ 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 ________________________________.
Page 4 of 97
STUDY GUIDE EXAM QUESTIONS WITH CORRECT
ANSWERS LATEST UPDATE
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
Page 1 of 97
,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
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
Page 2 of 97
,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
___________________ 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
Page 3 of 97
, _________________ 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 ________________________________.
Page 4 of 97
