INTUIT TAX CERTIFICATION LEVEL 1 EXAM PREP
STUDY GUIDE 2026 PRACTICE QUESTIONS
AND SOLUTIONS GRADED A+
◉ Taxpayer Filing Requirements. Answer: Filing thresholds based on
age, filing status, gross income.
◉ Form 1040 Overview. Answer: Purpose of Form 1040; main
sections for income, adjustments, tax computation, payments.
◉ Form 1040 Line 1: Wages, Salaries, Tips. Answer: Box 1 of W-2;
reporting tips; attached Form W-2.
◉ Form 1040 Lines 2a & 2b: Interest Income. Answer: 2a: Tax-
exempt interest (municipal bond interest); 2b: Taxable interest
(1099-INT box 1).
◉ Form 1040 Lines 3a & 3b: Dividends. Answer: 3a: Qualified
dividends at capital gains rates; 3b: Ordinary dividends at ordinary
rates.
, ◉ Filing Status Definitions. Answer: Single; Married Filing Jointly
(MFJ); Married Filing Separately (MFS); Head of Household (HOH);
Qualifying Widow(er).
◉ Qualifying Dependent Tests. Answer: Relationship test; residency
test; age test; support test; joint return test.
◉ Gross Income Inclusions. Answer: Wages; salaries; tips; interest;
dividends; business income; rental income; unemployment
compensation; alimony (pre-2019).
◉ Gross Income Exclusions. Answer: Gifts and bequests; life
insurance proceeds; municipal bond interest; qualified scholarships;
employer-provided health benefits.
◉ Adjustments to Income. Answer: Educator expenses; IRA
contributions; student loan interest; self-employed health insurance;
HSA contributions.
◉ Adjusted Gross Income (AGI). Answer: Gross income minus
above-the-line deductions; used to determine eligibility for many tax
benefits.
◉ Standard Deduction Amounts (2024). Answer: Single $13,850;
MFJ $27,700; MFS $13,850; HOH $20,800; QW $27,700.
STUDY GUIDE 2026 PRACTICE QUESTIONS
AND SOLUTIONS GRADED A+
◉ Taxpayer Filing Requirements. Answer: Filing thresholds based on
age, filing status, gross income.
◉ Form 1040 Overview. Answer: Purpose of Form 1040; main
sections for income, adjustments, tax computation, payments.
◉ Form 1040 Line 1: Wages, Salaries, Tips. Answer: Box 1 of W-2;
reporting tips; attached Form W-2.
◉ Form 1040 Lines 2a & 2b: Interest Income. Answer: 2a: Tax-
exempt interest (municipal bond interest); 2b: Taxable interest
(1099-INT box 1).
◉ Form 1040 Lines 3a & 3b: Dividends. Answer: 3a: Qualified
dividends at capital gains rates; 3b: Ordinary dividends at ordinary
rates.
, ◉ Filing Status Definitions. Answer: Single; Married Filing Jointly
(MFJ); Married Filing Separately (MFS); Head of Household (HOH);
Qualifying Widow(er).
◉ Qualifying Dependent Tests. Answer: Relationship test; residency
test; age test; support test; joint return test.
◉ Gross Income Inclusions. Answer: Wages; salaries; tips; interest;
dividends; business income; rental income; unemployment
compensation; alimony (pre-2019).
◉ Gross Income Exclusions. Answer: Gifts and bequests; life
insurance proceeds; municipal bond interest; qualified scholarships;
employer-provided health benefits.
◉ Adjustments to Income. Answer: Educator expenses; IRA
contributions; student loan interest; self-employed health insurance;
HSA contributions.
◉ Adjusted Gross Income (AGI). Answer: Gross income minus
above-the-line deductions; used to determine eligibility for many tax
benefits.
◉ Standard Deduction Amounts (2024). Answer: Single $13,850;
MFJ $27,700; MFS $13,850; HOH $20,800; QW $27,700.
