1
Intuit Academy Tax Level 1 Exam Question Bank
Actual Exam 2026/2027 | Complete Exam-Style
Questions | 100% Verified – Detailed Rationales –
Pass Guaranteed – A+ Graded
TABLE OF CONTENTS
Section 1 | Tax Fundamentals and Filing Status | Q1 – Q10
Section 2 | Gross Income and Adjustments | Q11 – Q20
Section 3 | Standard and Itemized Deductions | Q21 – Q30
Section 4 | Credits, Withholding, and Estimated Payments | Q31 – Q40
Section 5 | Tax Law Application and Client Scenarios | Q41 – Q50
Instructions: Choose the single best answer. Pass: 80% in 90 minutes.
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SECTION 1: TAX FUNDAMENTALS AND FILING STATUS Q1 – Q10
══════════════════════════════════════
Question 1 of 50
Your client, Sarah, is a single mother with a 5-year-old son. She lived alone with her son for the
entire tax year and paid more than half the cost of keeping up the home. Her income was
$45,000, and she provides over half of her son's support. Which filing status should she claim to
optimize her tax situation?
A. Single
B. Head of Household
C. Qualifying Widow(er)
D. Married Filing Separately
,2
Correct Answer: B
Rationale: Sarah qualifies for Head of Household because she is unmarried, paid more than half
the cost of maintaining a home, and has a qualifying dependent (her son) living with her for more
than half the year. This status offers a higher standard deduction and more favorable tax brackets
than filing as Single.
Question 2 of 50
During a consultation with a married couple, Mark and Lisa, you learn they are legally separated
under a decree of divorce or separate maintenance as of December 31. They live in separate
residences but have not finalized the divorce yet due to state processing delays. How should you
advise them to file their federal tax return for the current year?
A. They must file as Married Filing Jointly
B. They must file as Married Filing Separately
C. They can file as Single if they lived apart the last 6 months
D. They can choose Head of Household if they have dependents
Correct Answer: B
Rationale: If a couple is legally separated under a decree of divorce or separate maintenance by
the last day of the year, they are considered unmarried for tax purposes and must file as Married
Filing Separately or possibly Head of Household. They cannot file Married Filing Jointly, and
Single is not an option unless the divorce is final.
Question 3 of 50
A client asks about claiming his 23-year-old daughter as a dependent. She is a full-time student
and lived with him for 8 months of the year. She earned $15,000 from a summer internship and
provided $12,000 of her own support. The client provided the remaining $8,000 of her support.
Which test prevents the client from claiming her?
A. The age test
,3
B. The residency test
C. The gross income test
D. The support test
Correct Answer: D
Rationale: To be a qualifying child, the child cannot provide more than half of their own support.
Since the daughter provided $12,000 out of the $20,000 total support, she provided more than
half (60%), disqualifying her as a dependent under the support test.
Question 4 of 50
Your client, Michael, is 68 years old and single. He receives Social Security benefits and a small
pension. He wants to know if he is required to file a tax return. Based on the 2025 gross income
thresholds, what is the minimum amount of gross income Michael must have to trigger a filing
requirement?
A. $14,600
B. $15,700
C. $16,550
D. $27,700
Correct Answer: B
Rationale: For 2025, the filing threshold for a single taxpayer who is 65 or older increases by the
additional standard deduction amount ($1,650) over the base single amount ($14,600), totaling
$15,700. This higher threshold accounts for the additional standard deduction available to
taxpayers over age 65.
Question 5 of 50
, 4
A client, David, divorced in 2022. Under the divorce decree, he pays alimony to his ex-spouse
but does not receive any alimony. He asks if the alimony payments he makes in 2025 are
deductible on his federal tax return. How should you respond?
A. Yes, alimony payments are deductible as an adjustment to income
B. No, alimony payments are neither deductible by the payer nor taxable to the recipient
C. Yes, but only if he itemizes his deductions on Schedule A
D. No, because the divorce was finalized after 2018
Correct Answer: B
Rationale: For divorce or separation instruments executed after December 31, 2018, alimony
payments are not deductible by the payer and are not included in the recipient's income. This is a
significant change from prior tax law and applies regardless of whether the payer itemizes
deductions.
Question 6 of 50
You are preparing a return for a married client whose spouse passed away in March of the
current tax year. The client has a dependent child and has not remarried. Which filing status
options are available to this client for the tax year of the spouse's death?
A. Single or Head of Household
B. Married Filing Jointly or Qualifying Surviving Spouse
C. Married Filing Jointly or Head of Household
D. Qualifying Surviving Spouse only
Correct Answer: B
Rationale: In the year of a spouse's death, the surviving spouse can file Married Filing Jointly
with the deceased spouse. Alternatively, they may qualify for Qualifying Surviving Spouse
Intuit Academy Tax Level 1 Exam Question Bank
Actual Exam 2026/2027 | Complete Exam-Style
Questions | 100% Verified – Detailed Rationales –
Pass Guaranteed – A+ Graded
TABLE OF CONTENTS
Section 1 | Tax Fundamentals and Filing Status | Q1 – Q10
Section 2 | Gross Income and Adjustments | Q11 – Q20
Section 3 | Standard and Itemized Deductions | Q21 – Q30
Section 4 | Credits, Withholding, and Estimated Payments | Q31 – Q40
Section 5 | Tax Law Application and Client Scenarios | Q41 – Q50
Instructions: Choose the single best answer. Pass: 80% in 90 minutes.
══════════════════════════════════════
SECTION 1: TAX FUNDAMENTALS AND FILING STATUS Q1 – Q10
══════════════════════════════════════
Question 1 of 50
Your client, Sarah, is a single mother with a 5-year-old son. She lived alone with her son for the
entire tax year and paid more than half the cost of keeping up the home. Her income was
$45,000, and she provides over half of her son's support. Which filing status should she claim to
optimize her tax situation?
A. Single
B. Head of Household
C. Qualifying Widow(er)
D. Married Filing Separately
,2
Correct Answer: B
Rationale: Sarah qualifies for Head of Household because she is unmarried, paid more than half
the cost of maintaining a home, and has a qualifying dependent (her son) living with her for more
than half the year. This status offers a higher standard deduction and more favorable tax brackets
than filing as Single.
Question 2 of 50
During a consultation with a married couple, Mark and Lisa, you learn they are legally separated
under a decree of divorce or separate maintenance as of December 31. They live in separate
residences but have not finalized the divorce yet due to state processing delays. How should you
advise them to file their federal tax return for the current year?
A. They must file as Married Filing Jointly
B. They must file as Married Filing Separately
C. They can file as Single if they lived apart the last 6 months
D. They can choose Head of Household if they have dependents
Correct Answer: B
Rationale: If a couple is legally separated under a decree of divorce or separate maintenance by
the last day of the year, they are considered unmarried for tax purposes and must file as Married
Filing Separately or possibly Head of Household. They cannot file Married Filing Jointly, and
Single is not an option unless the divorce is final.
Question 3 of 50
A client asks about claiming his 23-year-old daughter as a dependent. She is a full-time student
and lived with him for 8 months of the year. She earned $15,000 from a summer internship and
provided $12,000 of her own support. The client provided the remaining $8,000 of her support.
Which test prevents the client from claiming her?
A. The age test
,3
B. The residency test
C. The gross income test
D. The support test
Correct Answer: D
Rationale: To be a qualifying child, the child cannot provide more than half of their own support.
Since the daughter provided $12,000 out of the $20,000 total support, she provided more than
half (60%), disqualifying her as a dependent under the support test.
Question 4 of 50
Your client, Michael, is 68 years old and single. He receives Social Security benefits and a small
pension. He wants to know if he is required to file a tax return. Based on the 2025 gross income
thresholds, what is the minimum amount of gross income Michael must have to trigger a filing
requirement?
A. $14,600
B. $15,700
C. $16,550
D. $27,700
Correct Answer: B
Rationale: For 2025, the filing threshold for a single taxpayer who is 65 or older increases by the
additional standard deduction amount ($1,650) over the base single amount ($14,600), totaling
$15,700. This higher threshold accounts for the additional standard deduction available to
taxpayers over age 65.
Question 5 of 50
, 4
A client, David, divorced in 2022. Under the divorce decree, he pays alimony to his ex-spouse
but does not receive any alimony. He asks if the alimony payments he makes in 2025 are
deductible on his federal tax return. How should you respond?
A. Yes, alimony payments are deductible as an adjustment to income
B. No, alimony payments are neither deductible by the payer nor taxable to the recipient
C. Yes, but only if he itemizes his deductions on Schedule A
D. No, because the divorce was finalized after 2018
Correct Answer: B
Rationale: For divorce or separation instruments executed after December 31, 2018, alimony
payments are not deductible by the payer and are not included in the recipient's income. This is a
significant change from prior tax law and applies regardless of whether the payer itemizes
deductions.
Question 6 of 50
You are preparing a return for a married client whose spouse passed away in March of the
current tax year. The client has a dependent child and has not remarried. Which filing status
options are available to this client for the tax year of the spouse's death?
A. Single or Head of Household
B. Married Filing Jointly or Qualifying Surviving Spouse
C. Married Filing Jointly or Head of Household
D. Qualifying Surviving Spouse only
Correct Answer: B
Rationale: In the year of a spouse's death, the surviving spouse can file Married Filing Jointly
with the deceased spouse. Alternatively, they may qualify for Qualifying Surviving Spouse
