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

The 2025 standard deduction for single filers is $15,000.

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 W-2 reports an employee's wages and the taxes withheld for the year.

Question 3

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

Accepted Answer

The last day of the tax year

Answer

Marital and filing status is generally determined on the last day of the tax year, December 31.

Question 4

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

Accepted Answer

$3,000

Answer

Net capital losses are deductible against ordinary income up to $3,000 per year, with the excess carried forward.

Question 5

Which of the following is generally NOT taxable income?

Accepted Answer

Gifts received

Answer

Gifts received are excluded from the recipient's gross income.

Tax Consulting Practice Test