CTA Individual Income Tax 3

Question 1

Which of the following is a 'above-the-line' deduction for individual taxpayers?

Accepted Answer

Student loan interest

Answer

Mortgage interest

Answer

Charitable contributions

Answer

State income taxes

Question 2

What is the tax treatment of a Roth IRA qualified distribution?

Accepted Answer

Tax-free and penalty-free

Answer

Taxed as ordinary income

Answer

Subject to 10% early withdrawal penalty

Answer

Taxed as capital gains

Question 3

Which of the following Social Security benefits are potentially taxable?

Accepted Answer

Up to 85% of benefits if combined income exceeds thresholds

Answer

All Social Security benefits regardless of income

Answer

Benefits only if AGI exceeds $100,000

Answer

Benefits are never taxable

Question 4

What is the net investment income tax (NIIT) rate imposed by the ACA on high-income individuals?

Accepted Answer

3.8%

Answer

2.9%

Answer

0.9%

Answer

5.0%

Question 5

Which deduction allows self-employed individuals to deduct health insurance premiums?

Accepted Answer

Self-employed health insurance deduction (above-the-line)

Answer

Schedule A itemized deduction only

Answer

Business expense on Schedule C only

Answer

Medical expense deduction subject to 7.5% AGI floor

Question 6

What is the maximum Child Tax Credit per qualifying child for tax year 2024?

Accepted Answer

$2,000

Answer

$1,000

Answer

$1,500

Answer

$3,000