INTUIT ACADEMY TAX LEVEL 1
COMPREHENSIVE STUDY GUIDE 2026 FULL
QUESTIONS AND SOLUTIONS GRADED A+
• Below the line deductions include.
Answer: Standard deduction
• Below the line deductions include.
Answer: Standard deduction
• Eligible educators can deduct up to _______ of qualified expenses paid
during the tax year..
Answer: $250
• Which of the following is an ineligible medical expense for HSA, Archer
MSA, and MA MSA?.
Answer: Breast enhancement
• The net capital gain is taxed at _______ if the married filing jointly taxpayer
income is less than $80,800..
Answer: 0%
• To claim a child as a dependent, they must meet the qualifying child test or
________________..
Answer: qualifying relative test
• Ordinary dividends are taxed at the same rate as __________ income tax
rate..
Answer: ordinary
• Eligible educators can deduct up to _______ of qualified expenses paid
during the tax year..
Answer: $250
• Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________..
, Answer: spent for qualified medical expenses of your dependent
• Which of the following is an ineligible medical expense for HSA, Archer
MSA, and MA MSA?.
Answer: Breast enhancement
• Which residency status is used when an individual is neither a U.S. citizen
nor a resident alien for tax purposes?.
Answer: Non-resident alien
• _____________ and ____________ are what taxpayers must know to
calculate their tax amount..
Answer: Taxable income and filing status
• 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..
Answer: 750,000
• The net capital gain is taxed at _______ if the married filing jointly taxpayer
income is less than $80,800..
Answer: 0%
• __________ reduce the amount of tax due..
Answer: Tax credits
• To claim a child as a dependent, they must meet the qualifying child test or
________________..
Answer: qualifying relative test
• Ordinary dividends are taxed at the same rate as __________ income tax
rate..
Answer: ordinary
• Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________..
Answer: spent for qualified medical expenses of your dependent
,• Which form is for beneficiaries who get income from trusts and estates?.
Answer: Form 1041
• ___________________ 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..
Answer: Taxable income
• Which residency status is used when an individual is neither a U.S. citizen
nor a resident alien for tax purposes?.
Answer: Non-resident alien
• _____________ and ____________ are what taxpayers must know to
calculate their tax amount..
Answer: Taxable income and filing status
• To satisfy the Substantial Presence Test, how many minimum days (in the
current year) must you be physically present in the United States?.
Answer: 31
• 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..
Answer: 750,000
• Complete the equation. ___________ = Selling Price - Purchase Price.
Answer: Capital Loss or Capital Gain
• __________ reduce the amount of tax due..
Answer: Tax credits
• Which form is for beneficiaries who get income from trusts and estates?.
Answer: Form 1041
• ___________________ 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..
, Answer: Taxable income
• _________________ helps sole proprietorships calculate the profit or loss
from a business while also providing the IRS with your total business
income and deductions..
Answer: Schedule C
• To satisfy the Substantial Presence Test, how many minimum days (in the
current year) must you be physically present in the United States?.
Answer: 31
• What type of deduction is a HSA contribution? 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.
Answer: Above-the-Line Deduction Some of the common expenses on
which Above-the-Line deductions are available include:
• Complete the equation. ___________ = Selling Price - Purchase Price.
Answer: Capital Loss or Capital Gain
• _________________ helps sole proprietorships calculate the profit or loss
from a business while also providing the IRS with your total business
income and deductions..
Answer: Schedule C
• What type of deduction is a HSA contribution? 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.
Answer: Above-the-Line Deduction Some of the common expenses on
which Above-the-Line deductions are available include:
• As it applies to compensation income, the general rule for sourcing wages
and personal services income is controlled by
COMPREHENSIVE STUDY GUIDE 2026 FULL
QUESTIONS AND SOLUTIONS GRADED A+
• Below the line deductions include.
Answer: Standard deduction
• Below the line deductions include.
Answer: Standard deduction
• Eligible educators can deduct up to _______ of qualified expenses paid
during the tax year..
Answer: $250
• Which of the following is an ineligible medical expense for HSA, Archer
MSA, and MA MSA?.
Answer: Breast enhancement
• The net capital gain is taxed at _______ if the married filing jointly taxpayer
income is less than $80,800..
Answer: 0%
• To claim a child as a dependent, they must meet the qualifying child test or
________________..
Answer: qualifying relative test
• Ordinary dividends are taxed at the same rate as __________ income tax
rate..
Answer: ordinary
• Eligible educators can deduct up to _______ of qualified expenses paid
during the tax year..
Answer: $250
• Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________..
, Answer: spent for qualified medical expenses of your dependent
• Which of the following is an ineligible medical expense for HSA, Archer
MSA, and MA MSA?.
Answer: Breast enhancement
• Which residency status is used when an individual is neither a U.S. citizen
nor a resident alien for tax purposes?.
Answer: Non-resident alien
• _____________ and ____________ are what taxpayers must know to
calculate their tax amount..
Answer: Taxable income and filing status
• 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..
Answer: 750,000
• The net capital gain is taxed at _______ if the married filing jointly taxpayer
income is less than $80,800..
Answer: 0%
• __________ reduce the amount of tax due..
Answer: Tax credits
• To claim a child as a dependent, they must meet the qualifying child test or
________________..
Answer: qualifying relative test
• Ordinary dividends are taxed at the same rate as __________ income tax
rate..
Answer: ordinary
• Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________..
Answer: spent for qualified medical expenses of your dependent
,• Which form is for beneficiaries who get income from trusts and estates?.
Answer: Form 1041
• ___________________ 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..
Answer: Taxable income
• Which residency status is used when an individual is neither a U.S. citizen
nor a resident alien for tax purposes?.
Answer: Non-resident alien
• _____________ and ____________ are what taxpayers must know to
calculate their tax amount..
Answer: Taxable income and filing status
• To satisfy the Substantial Presence Test, how many minimum days (in the
current year) must you be physically present in the United States?.
Answer: 31
• 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..
Answer: 750,000
• Complete the equation. ___________ = Selling Price - Purchase Price.
Answer: Capital Loss or Capital Gain
• __________ reduce the amount of tax due..
Answer: Tax credits
• Which form is for beneficiaries who get income from trusts and estates?.
Answer: Form 1041
• ___________________ 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..
, Answer: Taxable income
• _________________ helps sole proprietorships calculate the profit or loss
from a business while also providing the IRS with your total business
income and deductions..
Answer: Schedule C
• To satisfy the Substantial Presence Test, how many minimum days (in the
current year) must you be physically present in the United States?.
Answer: 31
• What type of deduction is a HSA contribution? 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.
Answer: Above-the-Line Deduction Some of the common expenses on
which Above-the-Line deductions are available include:
• Complete the equation. ___________ = Selling Price - Purchase Price.
Answer: Capital Loss or Capital Gain
• _________________ helps sole proprietorships calculate the profit or loss
from a business while also providing the IRS with your total business
income and deductions..
Answer: Schedule C
• What type of deduction is a HSA contribution? 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.
Answer: Above-the-Line Deduction Some of the common expenses on
which Above-the-Line deductions are available include:
• As it applies to compensation income, the general rule for sourcing wages
and personal services income is controlled by
