Tax Consulting Income Tax Knowledge 2

Question 1

For the 2025 tax year, what is the standard deduction for a single filer under age 65?

Accepted Answer

$15,000

Answer

$13,850

Answer

$14,600

Answer

$27,700

Question 2

Which form does an employer use to report an employee's annual wages and withheld taxes?

Accepted Answer

Form W-2

Answer

Form 1099-NEC

Answer

Form W-4

Answer

Form 1040

Question 3

A taxpayer's filing status is determined as of what date?

Accepted Answer

The last day of the tax year

Answer

January 1 of the tax year

Answer

The filing deadline

Answer

The first day they had income

Question 4

What is the maximum capital loss a taxpayer can deduct against ordinary income in a single year?

Accepted Answer

$3,000

Answer

$1,500

Answer

$5,000

Answer

Unlimited

Question 5

Which of the following is generally NOT taxable income?

Accepted Answer

Gifts received

Answer

Tips received

Answer

Unemployment compensation

Answer

Interest from a savings account

Question 6

What does AGI stand for on a federal tax return?

Accepted Answer

Adjusted Gross Income

Answer

Annual Gross Income

Answer

Aggregate Gross Income

Answer

Average Gross Income

Question 7

A self-employed individual must pay self-employment tax to cover which programs?

Accepted Answer

Social Security and Medicare

Answer

Federal income tax only

Answer

Unemployment insurance

Answer

State disability