Intuit Tax Level 1 Exam Complete Questions And Quality Answers 2026/27|| ACE THE TEST

Married Filing Jointly: Social Security Taxes - CORRECT ANSWER Below $32,000 - No tax $32k -$44k - 50% $44k + - 85% All other filing status': Social Security Tax - CORRECT ANSWER Below $25,000 - No tax $25k-$34k - 50% $34k+ - 85% States that tax social security income - CORRECT ANSWER Colorado CT Kansas Minnesota Montana New Mexico RI Utah Vermont WV Non-deductible Expenses - CORRECT ANSWER Federal income Social Security Medicare Federal unemployment Railroad retirement Custom duties Federal estate & gift taxes Gasoline, car, property improvements, license fee taxes Foreign personal or real property taxes State & local income AND sales taxes All real estate taxes that year if sold home Nontaxable Income - CORRECT ANSWER child support payments, welfare benefits, cash rebates, damage awards for personal injury or sickness, gifts, alimony for divorce after 2018, healthcare benefits, money reimbursed from qualifying adoptions, life insurance policy when someone dies, money from a qualified scholarship except if spent on rent, personal expenses. Is Gofund me taxable? - CORRECT ANSWER False Can you amend your tax return from married filing jointly to married filing separately? - CORRECT ANSWER Are guaranteed payments considered wages in Box 1 on 1040? - CORRECT ANSWER The payments are recorded on schedule k-1 and included as income on schedule E of their form 1040 Form 8812 - CORRECT ANSWER Additional Child Tax Credit Form 1040 - CORRECT ANSWER The standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns. Form 1116 - CORRECT ANSWER Foreign Tax Credit (Individual, Estate or Trust) Form 2241 - CORRECT ANSWER Child and dependent care expenses Form 5695 - CORRECT ANSWER Residential Energy Credits Form 8862 - CORRECT ANSWER Information To Claim Earned Income Credit After Disallowance Form 2210 - CORRECT ANSWER Underpayment of Estimated Tax by Individuals, Estates, and Trusts Form 1040 X - CORRECT ANSWER Amended U.S. Individual Income Tax Return Form 1040-SR - CORRECT ANSWER U.S. Tax Return for Seniors Form 1040-NR - CORRECT ANSWER nonresident alien Form 1040 (Schedule C) - CORRECT ANSWER Used to report income or (loss) from a business operated or a profession practiced as a sole proprietor Schedule B - CORRECT ANSWER Interest and Ordinary Dividends Schedule SE - CORRECT ANSWER Form used to calculate self-employment tax. Schedule EIC Form - CORRECT ANSWER Earned income credit Schedule E - CORRECT ANSWER Supplemental income and loss ( rent, royalty, and pass through income from Forms 1065, 1120S and 1041) Schedule D - CORRECT ANSWER Capital Gains and Losses Schedule F - CORRECT ANSWER Profit or Loss From Farming Schedule 1 - CORRECT ANSWER additional income and adjustments to income Alimony Self employment tax IRA Schedule 2 - CORRECT ANSWER additional taxes Estimated payments Due Date - CORRECT ANSWER April 15th, June 15th, September 15th, and Jan 15th Qualifying Surviving Spouse - CORRECT ANSWER -Available for the two years following the year of spouse's death -Surviving spouse does not qualify if he or she remarries during the two-year period. -Surviving spouse must maintain household for dependent child. Non- US Citizen - CORRECT ANSWER Resident alien if they meet green card test OR Substantial presence test - minimum 31 days current year 1/8 days of prior year 1/6 days of year before the prior year. Must total 183 days when added. Dual status alien - resident alien to non-resident alien Below the Line Deductions (From AGI) - CORRECT ANSWER Itemized deductions Gambling losses (to the extent of winnings) Federally declared disasters Medical expenses up to 7.5% of AGI Mortgage interest Property taxes State and local taxes Charitable donations up to 60% Qualifying Child - CORRECT ANSWER A child who meets the relationship, age, residency, support, joint return, and the special test tests with regard to a taxpayer to determine the taxpayer's eligibility to claim the dependency exemption, child tax credit, earned income credit, or child and dependent care credit with regard to the child, or to use the head of household filing status. Foreign Tax Credit (FTC) - CORRECT ANSWER A U.S. citizen or resident who incurs or pays income taxes to a foreign country on income subject to U.S. tax may be able to claim some of these taxes as a credit against the U.S. income tax. §§ 27 and 901-905. Foreign tax deduction - CORRECT ANSWER an itemized deduction, classified as a withholding tax, that American taxpayers may take to account for taxes already paid to a foreign government. Schedule 1099-SA - CORRECT ANSWER Distributions from a HSA, Archer MSA, or Medicare Advantage MSA MSA - medical savings account HSA - Health savings account Roth IRA - CORRECT ANSWER Taxed initially but interest grows tax free afterwards. A personal savings plan; contributions are not tax-deductible; earnings are tax-free Individual Retirement Account (IRA) - CORRECT ANSWER Pre-tax - a tax-sheltered retirement plan in which people can annually invest earnings up to a certain amount MAGI $77k or less Up to $7k tax free $8k 50 and older MAGI $87k+ No deduction To claim the student loan interest deduction your MAGI must be - CORRECT ANSWER $90,000 or less for single filers and $185,000 or less for joint filers in 2023 What is the maximum student loan interest deduction? - CORRECT ANSWER $2500 but is phased out or reduced if the taxpayers MAGI is bw $85k-$100k single and $170k-$200k joint 2025 Does foreign tax credit include passive income? - CORRECT ANSWER True Are life insurance death benefits taxable? - CORRECT ANSWER No. Death benefits are received tax-free. Are guaranteed payments subject to self-employment tax? - CORRECT ANSWER True Is sick pay taxable? - CORRECT ANSWER True Can net capital losses over $3000 be carried forward indefinitely? - CORRECT ANSWER True preferential tax rate - CORRECT ANSWER a tax rate that is lower than the tax rate applied to o