Quote by QuarkCharmer
let's assume Neon (1s^2 2s^2 2p^6) takes in a photon particle/wave. Is it now at the third energy level?

It depends on the energy of the photon. In order for the atom to absorb the photon, the photon's energy has to match one of the possible upward transitions. It might kick an electron from n=2 to n=3 or from n=2 to n=4 or from n=1 to n=3, etc. Or it might do nothing at all because its energy doesn't match any transition.