CTA Tax Credits and Deductions 2

Question 1

Which tax credit provides a dollar-for-dollar reduction in tax liability for contributions to retirement savings plans by lower-income taxpayers?

Accepted Answer

Saver's Credit (Retirement Savings Contributions Credit)

Answer

Child Tax Credit

Answer

Premium Tax Credit

Answer

Adoption Credit

Question 2

Which of the following medical expenses is deductible on Schedule A?

Accepted Answer

Prescription medications

Answer

Gym membership for general health

Answer

Cosmetic surgery for appearance only

Answer

Weight-loss program for general wellness

Question 3

The state and local tax (SALT) deduction is currently capped at what amount for most taxpayers?

Accepted Answer

$10,000

Answer

$5,000

Answer

$15,000

Answer

Unlimited

Question 4

The Business Energy Investment Tax Credit (ITC) under Section 48 incentivizes investment in which type of property?

Accepted Answer

Qualifying renewable energy property like solar panels

Answer

Conventional energy generation equipment

Answer

Natural gas processing equipment

Answer

Real estate improvements

Question 5

Which credit is available to employers who provide qualified family and medical leave to employees?

Accepted Answer

Employer Credit for Paid Family and Medical Leave (Section 45S)

Answer

Work Opportunity Tax Credit (WOTC)

Answer

Disabled Access Credit

Answer

Small Employer Health Insurance Credit

Question 6

Charitable contribution deductions for appreciated capital gain property donated to a public charity are generally limited to what percentage of AGI?

Accepted Answer

30% of AGI

Answer

20% of AGI

Answer

50% of AGI

Answer

60% of AGI