Page 1 of 102
Intuit Academy Tax Level 1 EXAM ALL 400
QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIS YEAR
QUESTION: Which of the following is an ineligible medical expense for HSA, Archer MSA, and
MA MSA? - ANSWER-Breast enhancement
QUESTION: The net capital gain is taxed at _______ if the married filing jointly taxpayer income
is less than $80,800. - ANSWER-0%
QUESTION: To claim a child as a dependent, they must meet the qualifying child test or
________________. - ANSWER-qualifying relative test
QUESTION: Ordinary dividends are taxed at the same rate as __________ income tax rate. -
ANSWER-ordinary
QUESTION: Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________. - ANSWER-spent for qualified medical
expenses of your dependent
1
, Page 2 of 102
QUESTION: 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
QUESTION: _____________ and ____________ are what taxpayers must know to calculate
their tax amount. - ANSWER-Taxable income and filing status
QUESTION: 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
QUESTION: __________ reduce the amount of tax due. - ANSWER-Tax credits
QUESTION: Which form is for beneficiaries who get income from trusts and estates? - ANSWER-
Form 1041
QUESTION: ___________________ 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
2
, Page 3 of 102
QUESTION: 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
QUESTION: Complete the equation. ___________ = Selling Price - Purchase Price - ANSWER-
Capital Loss or Capital Gain
Q; Below the line deductions include - ANSWER-Standard deduction
QUESTION: Eligible educators can deduct up to _______ of qualified expenses paid during the
tax year. - ANSWER-$250
QUESTION: _________________ 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
QUESTION: What type of deduction is a HSA contribution? - ANSWER-Above-the-Line Deduction
Some of the common expenses on which Above-the-Line deductions are available include:
Educator expenses
Early withdrawal penalties of saving accounts
3
, Page 4 of 102
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
QUESTION: As it applies to compensation income, the general rule for sourcing wages and
personal services income is controlled by ________________________________. - ANSWER-
where the service is performed The general rule for sourcing wages and personal services
income is controlled by where the service is performed. The residence of the recipient of the
service, the place of contracting, and the time and place of payment are irrelevant.
4
Intuit Academy Tax Level 1 EXAM ALL 400
QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIS YEAR
QUESTION: Which of the following is an ineligible medical expense for HSA, Archer MSA, and
MA MSA? - ANSWER-Breast enhancement
QUESTION: The net capital gain is taxed at _______ if the married filing jointly taxpayer income
is less than $80,800. - ANSWER-0%
QUESTION: To claim a child as a dependent, they must meet the qualifying child test or
________________. - ANSWER-qualifying relative test
QUESTION: Ordinary dividends are taxed at the same rate as __________ income tax rate. -
ANSWER-ordinary
QUESTION: Distributions from HSA, Archer MSA, or MS MSA are non-taxable when
_________________________________________. - ANSWER-spent for qualified medical
expenses of your dependent
1
, Page 2 of 102
QUESTION: 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
QUESTION: _____________ and ____________ are what taxpayers must know to calculate
their tax amount. - ANSWER-Taxable income and filing status
QUESTION: 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
QUESTION: __________ reduce the amount of tax due. - ANSWER-Tax credits
QUESTION: Which form is for beneficiaries who get income from trusts and estates? - ANSWER-
Form 1041
QUESTION: ___________________ 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
2
, Page 3 of 102
QUESTION: 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
QUESTION: Complete the equation. ___________ = Selling Price - Purchase Price - ANSWER-
Capital Loss or Capital Gain
Q; Below the line deductions include - ANSWER-Standard deduction
QUESTION: Eligible educators can deduct up to _______ of qualified expenses paid during the
tax year. - ANSWER-$250
QUESTION: _________________ 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
QUESTION: What type of deduction is a HSA contribution? - ANSWER-Above-the-Line Deduction
Some of the common expenses on which Above-the-Line deductions are available include:
Educator expenses
Early withdrawal penalties of saving accounts
3
, Page 4 of 102
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
QUESTION: As it applies to compensation income, the general rule for sourcing wages and
personal services income is controlled by ________________________________. - ANSWER-
where the service is performed The general rule for sourcing wages and personal services
income is controlled by where the service is performed. The residence of the recipient of the
service, the place of contracting, and the time and place of payment are irrelevant.
4
