Intuit Academy Tax Level 1 Exam Questions
and Answers with Detailed Rationales 2026
| Verified | 100% Accurate
• Residency Status -✓✓Determines tax liability based on residence
location.
• Eligible Dependents -✓✓Individuals qualifying for tax benefits under
taxpayer.
• W-2 Form -✓✓Reports wages and tax withheld from employee's
paycheck.
• 1040 Form -✓✓Primary tax form for individual income tax returns.
• Taxable Income -✓✓Income subject to taxation after deductions.
• Non-Taxable Income -✓✓Income exempt from federal income tax.
• Schedule C -✓✓Form for reporting income or loss from business.
• QBI -✓✓Qualified Business Income eligible for tax deduction.
• Capital Gains -✓✓Profit from the sale of assets or investments.
• Adjusted Gross Income -✓✓Gross income minus specific deductions.
• Roth IRA Distributions -✓✓Tax-free withdrawals from Roth IRA
under conditions.
and Answers with Detailed Rationales 2026
| Verified | 100% Accurate
• Residency Status -✓✓Determines tax liability based on residence
location.
• Eligible Dependents -✓✓Individuals qualifying for tax benefits under
taxpayer.
• W-2 Form -✓✓Reports wages and tax withheld from employee's
paycheck.
• 1040 Form -✓✓Primary tax form for individual income tax returns.
• Taxable Income -✓✓Income subject to taxation after deductions.
• Non-Taxable Income -✓✓Income exempt from federal income tax.
• Schedule C -✓✓Form for reporting income or loss from business.
• QBI -✓✓Qualified Business Income eligible for tax deduction.
• Capital Gains -✓✓Profit from the sale of assets or investments.
• Adjusted Gross Income -✓✓Gross income minus specific deductions.
• Roth IRA Distributions -✓✓Tax-free withdrawals from Roth IRA
under conditions.
