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

Child support payments are not included in the recipient's gross income under federal tax law.

Question 2

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

Accepted Answer

$7,000

Answer

The IRA contribution limit for 2024 is $7,000 for taxpayers under age 50.

Question 3

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

Accepted Answer

Form 1099-INT

Answer

Form 1099-INT reports interest income paid by financial institutions.

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

An asset must be held for more than one year to qualify for long-term capital gains treatment.

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

Under IRC Section 127, employer-provided educational assistance up to $5,250 per year is excluded from the employee's gross income.

CTA - Certified Tax Advisor Practice Test