Tax Preparation Deductions and Credits

Question 1

What is the 2024 standard deduction for a single taxpayer under age 65?

Accepted Answer

$14,600

Answer

$12,000

Answer

$13,850

Answer

$29,200

Question 2

Which of the following is an above-the-line deduction (adjustment to income)?

Accepted Answer

Student loan interest

Answer

Mortgage interest

Answer

Charitable contributions

Answer

State income taxes

Question 3

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

Accepted Answer

$2,000

Answer

$1,000

Answer

$1,500

Answer

$3,600

Question 4

The Earned Income Tax Credit (EITC) is best described as:

Accepted Answer

A refundable credit for low-to-moderate income workers

Answer

A deduction for low-income workers

Answer

A nonrefundable credit for all wage earners

Answer

A deduction only for self-employed individuals

Question 5

Medical expenses are deductible as an itemized deduction to the extent they exceed what percentage of AGI?

Accepted Answer

7.5%

Answer

5%

Answer

10%

Answer

12%

Question 6

The American Opportunity Tax Credit (AOTC) provides a maximum annual credit of:

Accepted Answer

$2,500

Answer

$1,000

Answer

$2,000

Answer

$4,000