INTUIT ACADEMY TAX LEVEL 1 335 2026
PRACTICE TEST SOLVED RESPONSES
◉ Relationship test (relative). Answer: Must be related to or live
with the taxpayer.
◉ Support test (relative). Answer: Can't provide more than half of
his or her own financial support.
◉ Gross income test (relative). Answer: Income must be below a
specific threshold set by the IRS.
◉ Qualifying relatives have to reside with the taxpayer.. Answer:
False
◉ Financial support for dependents includes. Answer: cost for
housing, food, utilities, and medical expenses.
◉ If a student has scholarship money left over after covering all
qualified education expenses they need to include. Answer: the
amount as part of their gross taxable income for tax purposes.
, ◉ Scholarship money counts as income. Answer: when used to pay
for room or board, utilities, or other non-qualified expenses such as
school supplies not listed as required. (Example books not required
are subject to taxation).
◉ 1098-T (parent). Answer: Usually reported on parent's tax return.
◉ If scholarship income in Box 5 of the 1098-T exceeds the amount
reported in Box 1 for qualified tuition and related expenses. Answer:
the excess amount is considered taxable income to be reported by
the student on a dependent tax return.
◉ For scholarships to be completely tax-free,. Answer: the money
must go toward paying qualified educational expenses at qualified
institutions.
◉ Scholarship funds are typically taxable income if they. Answer:
exceed the qualified amount or go toward certain non-qualified
expenses.
◉ To ensure a scholarship is not taxed. Answer: Utilize the funds for
qualified educational expenses.
PRACTICE TEST SOLVED RESPONSES
◉ Relationship test (relative). Answer: Must be related to or live
with the taxpayer.
◉ Support test (relative). Answer: Can't provide more than half of
his or her own financial support.
◉ Gross income test (relative). Answer: Income must be below a
specific threshold set by the IRS.
◉ Qualifying relatives have to reside with the taxpayer.. Answer:
False
◉ Financial support for dependents includes. Answer: cost for
housing, food, utilities, and medical expenses.
◉ If a student has scholarship money left over after covering all
qualified education expenses they need to include. Answer: the
amount as part of their gross taxable income for tax purposes.
, ◉ Scholarship money counts as income. Answer: when used to pay
for room or board, utilities, or other non-qualified expenses such as
school supplies not listed as required. (Example books not required
are subject to taxation).
◉ 1098-T (parent). Answer: Usually reported on parent's tax return.
◉ If scholarship income in Box 5 of the 1098-T exceeds the amount
reported in Box 1 for qualified tuition and related expenses. Answer:
the excess amount is considered taxable income to be reported by
the student on a dependent tax return.
◉ For scholarships to be completely tax-free,. Answer: the money
must go toward paying qualified educational expenses at qualified
institutions.
◉ Scholarship funds are typically taxable income if they. Answer:
exceed the qualified amount or go toward certain non-qualified
expenses.
◉ To ensure a scholarship is not taxed. Answer: Utilize the funds for
qualified educational expenses.
