CTP CTP Tax Credits, Deductions & Exemptions

Question 1

The Earned Income Tax Credit (EITC) is a refundable credit designed primarily to benefit:

Accepted Answer

Low-to-moderate income workers and families

Answer

High-income earners with investment losses

Answer

Retirees with pension income

Answer

Self-employed individuals with home offices

Question 2

A taxpayer who pays mortgage interest on a loan secured by their primary residence may deduct that interest on:

Accepted Answer

Schedule A as an itemized deduction

Answer

Schedule C as a business expense

Answer

Form 8829 as a home office expense

Answer

Schedule E as a rental expense

Question 3

The Child Tax Credit for tax year 2024 is worth up to how much per qualifying child under age 17?

Accepted Answer

$2,000

Answer

$3,600

Answer

$1,500

Answer

$1,000

Question 4

Which of the following expenses qualifies as a miscellaneous itemized deduction subject to the 2% AGI floor prior to the Tax Cuts and Jobs Act (TCJA)?

Accepted Answer

Unreimbursed employee business expenses

Answer

Medical expenses

Answer

State and local taxes

Answer

Charitable contributions

Question 5

The standard deduction for a single filer for tax year 2024 is approximately:

Accepted Answer

$14,600

Answer

$12,950

Answer

$27,700

Answer

$21,900

Question 6

A taxpayer's deduction for state and local taxes (SALT) is currently limited to how much per year under TCJA?

Accepted Answer

$10,000

Answer

$5,000

Answer

$15,000

Answer

No limit