INTUIT ACADEMY TAX LEVEL 1 COMPLETE
EXAM STUDY QUESTIONS WITH ALREADY
GRADED A+ ANSWERS
1. Relationship test (relative) - ANSWER Must be related to or live with the
taxpayer.
2. Support test (relative) - ANSWER Can't provide more than half of his or her
own financial support.
3. Gross income test (relative) - ANSWER Income must be below a specific
threshold set by the IRS.
4. Qualifying relatives have to reside with the taxpayer. - ANSWER False
5. Financial support for dependents includes - ANSWER cost for housing,
food, utilities, and medical expenses.
6. 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.
7. 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).
8. 1098-T (parent) - ANSWER Usually reported on parent's tax return.
,9. 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.
10.For scholarships to be completely tax-free, - ANSWER the money must go
toward paying qualified educational expenses at qualified institutions.
11.Scholarship funds are typically taxable income if they - ANSWER exceed
the qualified amount or go toward certain non-qualified expenses.
12.To ensure a scholarship is not taxed - ANSWER Utilize the funds for
qualified educational expenses.
13.Qualified Education Expenses - ANSWER Tuition, enrollment, course-
related costs, mandatory fees, required books, supplies, equipment, and other
necessary fees at an eligible institution.
14.For scholarships to cover course -related expenses tax-free, these expenses
must - ANSWER be required for all students in a program.
15.1040 is used to - ANSWER report income and determine their tax for the
year, and any refund or additional tax owed.
16.Considered Unmarried - ANSWER If they file a separate return, paid more
than half the cost of keeping up the home, their spouse did not live in their
home during the last six months of the year.
, 17.Considered Unmarried (cont) - ANSWER Have a child, stepchild, or foster
child whose main home was with them for more than half a year. Can claim
the child as a qualifying dependent.
18.Qualifying Surviving Spouse Status - ANSWER Spouse passed away
during the previous two years. Has a qualifying dependent. Hasn't remarried.
Paid more than half the cost of keeping up the home during the tax year.
19.Qualifying Surviving Spouse files - ANSWER a joint return with deceased
spouse (married filing jointly).
20.Head of Household. Even when not required to by the income threshold,
fling a return may be beneficial for the taxpayer. - ANSWER True.
21.The taxpayer cannot claim any dependents - ANSWER if they or their
spouse (fling jointly) can be claimed as a dependent on someone else's tax
return for the current tax year
22.The taxpayer can claim any qualified dependents on their tax return if -
ANSWER No one else can claim them as a dependent on their tax return for
the current tax year.
23.Support - ANSWER Household expenses such as rent, groceries, utilities,
clothing, in reimbursed medical fees, travel, and recreational expenses.
24.Qualifying child - ANSWER A child who is your child, stepchild, foster
child, sibling, step sibling, half sibling, or descendant of any of these.
25.Possible dependent if the qualifying child was - ANSWER a citizen,
national, or resident alien of the US, or a resident of Canada or Mexico.
EXAM STUDY QUESTIONS WITH ALREADY
GRADED A+ ANSWERS
1. Relationship test (relative) - ANSWER Must be related to or live with the
taxpayer.
2. Support test (relative) - ANSWER Can't provide more than half of his or her
own financial support.
3. Gross income test (relative) - ANSWER Income must be below a specific
threshold set by the IRS.
4. Qualifying relatives have to reside with the taxpayer. - ANSWER False
5. Financial support for dependents includes - ANSWER cost for housing,
food, utilities, and medical expenses.
6. 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.
7. 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).
8. 1098-T (parent) - ANSWER Usually reported on parent's tax return.
,9. 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.
10.For scholarships to be completely tax-free, - ANSWER the money must go
toward paying qualified educational expenses at qualified institutions.
11.Scholarship funds are typically taxable income if they - ANSWER exceed
the qualified amount or go toward certain non-qualified expenses.
12.To ensure a scholarship is not taxed - ANSWER Utilize the funds for
qualified educational expenses.
13.Qualified Education Expenses - ANSWER Tuition, enrollment, course-
related costs, mandatory fees, required books, supplies, equipment, and other
necessary fees at an eligible institution.
14.For scholarships to cover course -related expenses tax-free, these expenses
must - ANSWER be required for all students in a program.
15.1040 is used to - ANSWER report income and determine their tax for the
year, and any refund or additional tax owed.
16.Considered Unmarried - ANSWER If they file a separate return, paid more
than half the cost of keeping up the home, their spouse did not live in their
home during the last six months of the year.
, 17.Considered Unmarried (cont) - ANSWER Have a child, stepchild, or foster
child whose main home was with them for more than half a year. Can claim
the child as a qualifying dependent.
18.Qualifying Surviving Spouse Status - ANSWER Spouse passed away
during the previous two years. Has a qualifying dependent. Hasn't remarried.
Paid more than half the cost of keeping up the home during the tax year.
19.Qualifying Surviving Spouse files - ANSWER a joint return with deceased
spouse (married filing jointly).
20.Head of Household. Even when not required to by the income threshold,
fling a return may be beneficial for the taxpayer. - ANSWER True.
21.The taxpayer cannot claim any dependents - ANSWER if they or their
spouse (fling jointly) can be claimed as a dependent on someone else's tax
return for the current tax year
22.The taxpayer can claim any qualified dependents on their tax return if -
ANSWER No one else can claim them as a dependent on their tax return for
the current tax year.
23.Support - ANSWER Household expenses such as rent, groceries, utilities,
clothing, in reimbursed medical fees, travel, and recreational expenses.
24.Qualifying child - ANSWER A child who is your child, stepchild, foster
child, sibling, step sibling, half sibling, or descendant of any of these.
25.Possible dependent if the qualifying child was - ANSWER a citizen,
national, or resident alien of the US, or a resident of Canada or Mexico.
