CTA Individual Income Tax 2

Question 1

Which of the following is NOT included in gross income under IRC Section 61?

Accepted Answer

Child support received

Answer

Rental income

Answer

Gambling winnings

Answer

Royalties

Question 2

What is the maximum contribution limit to a traditional IRA for taxpayers under age 50 in 2024?

Accepted Answer

$7,000

Answer

$5,500

Answer

$6,000

Answer

$7,500

Question 3

Which tax form reports interest income received from a bank or financial institution?

Accepted Answer

Form 1099-INT

Answer

Form 1099-DIV

Answer

Form 1099-MISC

Answer

Form 1099-B

Question 4

What is the holding period required for a capital gain to be classified as long-term?

Accepted Answer

More than 1 year

Answer

More than 6 months

Answer

More than 9 months

Answer

More than 2 years

Question 5

Which of the following education benefits is excluded from an employee's gross income?

Accepted Answer

Employer-provided educational assistance up to $5,250

Answer

Employer-paid graduate tuition above $5,250

Answer

Personal education expenses paid by employer

Answer

529 plan earnings used for K-12 expenses

Question 6

The alternative minimum tax (AMT) was designed primarily to ensure that:

Accepted Answer

High-income taxpayers cannot use too many deductions to eliminate their tax liability

Answer

All taxpayers pay at least a minimum amount of tax

Answer

Self-employed taxpayers pay Social Security taxes

Answer

Corporations pay the same rate as individuals