Intuit Academy-Tax Level 1 Exam-Learning Objectives
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Personal Information and Dependents
- Recommend the correct filing status based on customer information
- Determine residency status based on customer information
- Identify eligible dependents
- Identify whether it’s required/recommended to file a return
Gross Income: Wages & Retirement Distributions
- Identify and interpret all boxes on a W-2 form
- Account for W-2 forms with income from multiple states
- Apply the basic income tax formula for individuals
- Prepare a 1040 form based on common tax situations
- Identify worldwide sources of income
- Categorize sources of income as taxable or non-taxable
Gross Income: Business Income, Capital Gains & Losses
- Classify all business income on a Schedule C
- Evaluate and categorize business expenses directly related to gross income, i.e. meals, entertainment
- Calculate business auto expenses
- Research and determine qualifications for QBI
- Integrate typical situations of capital gains/losses into gross income
Gross Income: Interest & Dividends
- Analyze and summarize taxes due on interest and dividends
- Identify situations in which there is an early withdrawal penalty
- Apply interest and dividends to the tax formula for individuals
- Account for foreign taxes paid
Gross Income: Partnership Income, Rentals and Miscellaneous
- Read and interpret a schedule K-1 and supplemental information
- Include partnership income in gross income on 1040
- Identify miscellaneous sources of income
- Explain how miscellaneous sources of income are taxed
- Incorporate miscellaneous sources of income into gross income
- Interpret 1099-SA and accurately apply the income to the 1040
- Evaluate social security income situations based on filing status and personal information
- Explain when gambling losses offset gambling winnings
Exclusions from Gross Income
- Identify exclusions and other adjustments to gross income
- Categorize common transactions as exclusions or deductions from gross income
- Calculate adjusted gross income based on exclusions
- Recognize when Roth IRA distributions are excluded from income but included on 1040
- Explain the difference between reportable and taxable income
Deductions for AGI
- Explain how to calculate adjusted gross income
- Identify common deductions, including alimony, IRA, student loan interest, educator expenses, and penalty on early withdrawal of savings
- Apply deductions to the tax formula for individuals
- Explain the difference between above the line and below the line deductions
- Analyze deductions and recommend whether to use the standard deduction or to itemize deductions
- Research and explain whether or not an item is deductible
Taxes
- Interpret the income tax table
- Identify and explain capital gains rates
Payments
- Calculate correct tax due
- Identify situations in which estimated tax payments are required
- Calculate taxes paid with extension
- Determine tax due when the refund amount from prior year was applied to current year’s taxes
- Explain under payment penalties
Credits
- Categorize tax credits as refundable or non-refundable
- Identify the most common tax credits and associated forms
- Apply tax credits to the tax formula for individuals
- Recommend specific education credits based on personal information
- Explain income limitations on credits
- Determine eligibility for specific tax credits
1040 Review
- Evaluate a 1040 form and identify errors
Considerations for State Taxes
- Identify the difference between how an item is treated between federal and state, or between states