Deductions and Credits Flashcards
6 cards from real Tax Preparation practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Deductions and Credits flashcards as text
What is the 2024 standard deduction for a single taxpayer under age 65?
Answer: $14,600
The standard deduction for a single filer in 2024 is $14,600, adjusted annually for inflation.
Which of the following is an above-the-line deduction (adjustment to income)?
Answer: Student loan interest
Student loan interest (up to $2,500) is an above-the-line deduction that reduces AGI regardless of whether the taxpayer itemizes.
What is the maximum Child Tax Credit per qualifying child for 2024?
Answer: $2,000
The Child Tax Credit is up to $2,000 per qualifying child under age 17, with a refundable portion of up to $1,700.
The Earned Income Tax Credit (EITC) is best described as:
Answer: A refundable credit for low-to-moderate income workers
The EITC is a refundable credit, meaning it can result in a refund even if the taxpayer has no tax liability.
Medical expenses are deductible as an itemized deduction to the extent they exceed what percentage of AGI?
Answer: 7.5%
Medical expenses exceeding 7.5% of adjusted gross income (AGI) are deductible as an itemized deduction on Schedule A.
The American Opportunity Tax Credit (AOTC) provides a maximum annual credit of:
Answer: $2,500
The AOTC provides up to $2,500 per eligible student per year for the first four years of higher education.
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