Intuit Turbo Tax Level 1 | Questions and answers |
2025
Is this a requirement for a Yes. You can't claim the EIC unless your investment income is $11,000 or
taxpayer to be eligible for the less.
Earned Income Tax Credit for
tax year 2023?
A taxpayer must have
investment income below
$11,000.00.
Hints:
To claim the Earned Income
Tax Credit (EITC), you much
have what qualifies as earned
income and meet certain
adjusted gross income (AGI)
and have investment income
of $11,000 or less and meet
certain filing status
requirements.
https://www.irs.gov/publications/
p596#:~:te xt=You%20can't
%20claim%20the,can't%20cl aim
%20the%20credit.
A taxpayer filing as Single
has $25,600 of taxable
income. Included in gross
income is a 1099-INT with box
1 Interest Income of
$5,000 tax exempt of $3,000 and interest on
U.S savings bonds of $1,200.
Additionally, the taxpayer has a
1099-DIV with dividend income
of $3,000 of which $2,000 is
qualified dividends and
capital gains distributions of
$500.
,A taxpayer needs help $20,000 Wages
identifying and $ 5,000 Capital Gains
understanding their Adjusted $ 5,000 Pension
Gross Income (AGI) for the tax -$ 5,000 Alimony Paid Tax Deduction
year 2023. Filing status is -$ 5,500 Student Loan Interest Tax Deduction
Single, their total income -$ 3,000 Child Care Tax Credit
__________________________________________________
consists of the following,
$16,800.00 Adjusted Gross Income
wages $20,000, capital
gains
$5,000, Pension income
$5,000. The taxpayer paid
alimony in the amount of
$5,000 for a divorce decree
dated 2017,
$5,500 of student loan interest
and $3,000 for child care.
What is the taxpayers AGI?
Hints:
Adjusted Gross Income (AGI) is
your annual gross income
minus certain adjustments
that the IRS uses to determine
your income tax liability for
the year.
How to calculate AGI for tax
purposes
* Determine your total income
* Subtract deductions and
expenses from your total
income
Is this item an allowable Yes. Under divorce or separation instruments executed on or
adjustment to income on the before December 31, 2018, alimony payments are taxable to
Federal U.S 1040 for tax year the recipient (and deductible by the payer).
2023?
The taxpayer pays alimony
under a divorce or separation
agreement executed June 15,
2016.
Hints:
https://www.irs.gov/faqs/
interest-
dividends-other-types-of-
income/alimony- child-support-
court-awards-
, damages/alimony-child-
support-court- awards-
damages-1
https://turbotax.intuit.com/tax-
tips/marriage/filing-taxes-after-
a-divorce-
is-alimony-taxable/L3RVrBfu7#
GoTo- Alimony-taxation
Is this item an allowable No, because Roth IRA's are not deductible.
adjustment to income on the
federal US 1040 for tax year
2023?
The taxpayer has earned
income of $77,690 and is not
covered by an employer's
retirement plan. The
taxpayer contributed
$4,700 to their Roth
IRA. Hints:
https://www.irs.gov/taxtopics/
tc451#:~:text= for%20more
%20information.-,Roth%20IRAs,
aren't%20subject%20to
%20tax.
https://www.irs.gov/retirement
-plans/ira- deduction-limits
2025
Is this a requirement for a Yes. You can't claim the EIC unless your investment income is $11,000 or
taxpayer to be eligible for the less.
Earned Income Tax Credit for
tax year 2023?
A taxpayer must have
investment income below
$11,000.00.
Hints:
To claim the Earned Income
Tax Credit (EITC), you much
have what qualifies as earned
income and meet certain
adjusted gross income (AGI)
and have investment income
of $11,000 or less and meet
certain filing status
requirements.
https://www.irs.gov/publications/
p596#:~:te xt=You%20can't
%20claim%20the,can't%20cl aim
%20the%20credit.
A taxpayer filing as Single
has $25,600 of taxable
income. Included in gross
income is a 1099-INT with box
1 Interest Income of
$5,000 tax exempt of $3,000 and interest on
U.S savings bonds of $1,200.
Additionally, the taxpayer has a
1099-DIV with dividend income
of $3,000 of which $2,000 is
qualified dividends and
capital gains distributions of
$500.
,A taxpayer needs help $20,000 Wages
identifying and $ 5,000 Capital Gains
understanding their Adjusted $ 5,000 Pension
Gross Income (AGI) for the tax -$ 5,000 Alimony Paid Tax Deduction
year 2023. Filing status is -$ 5,500 Student Loan Interest Tax Deduction
Single, their total income -$ 3,000 Child Care Tax Credit
__________________________________________________
consists of the following,
$16,800.00 Adjusted Gross Income
wages $20,000, capital
gains
$5,000, Pension income
$5,000. The taxpayer paid
alimony in the amount of
$5,000 for a divorce decree
dated 2017,
$5,500 of student loan interest
and $3,000 for child care.
What is the taxpayers AGI?
Hints:
Adjusted Gross Income (AGI) is
your annual gross income
minus certain adjustments
that the IRS uses to determine
your income tax liability for
the year.
How to calculate AGI for tax
purposes
* Determine your total income
* Subtract deductions and
expenses from your total
income
Is this item an allowable Yes. Under divorce or separation instruments executed on or
adjustment to income on the before December 31, 2018, alimony payments are taxable to
Federal U.S 1040 for tax year the recipient (and deductible by the payer).
2023?
The taxpayer pays alimony
under a divorce or separation
agreement executed June 15,
2016.
Hints:
https://www.irs.gov/faqs/
interest-
dividends-other-types-of-
income/alimony- child-support-
court-awards-
, damages/alimony-child-
support-court- awards-
damages-1
https://turbotax.intuit.com/tax-
tips/marriage/filing-taxes-after-
a-divorce-
is-alimony-taxable/L3RVrBfu7#
GoTo- Alimony-taxation
Is this item an allowable No, because Roth IRA's are not deductible.
adjustment to income on the
federal US 1040 for tax year
2023?
The taxpayer has earned
income of $77,690 and is not
covered by an employer's
retirement plan. The
taxpayer contributed
$4,700 to their Roth
IRA. Hints:
https://www.irs.gov/taxtopics/
tc451#:~:text= for%20more
%20information.-,Roth%20IRAs,
aren't%20subject%20to
%20tax.
https://www.irs.gov/retirement
-plans/ira- deduction-limits
