CTA Individual Income Tax 1 — Questions and Answers
Question 1: What is the standard deduction for a single filer for tax year 2024?
- $12,950
- $13,850
- $14,600 (Correct answer)
- $15,000
Correct answer: $14,600
For tax year 2024, the standard deduction for single filers is $14,600.
Question 2: Which form is used by US taxpayers to file their individual federal income tax return?
- Form 1099
- Form W-2
- Form 1040 (Correct answer)
- Form 941
Correct answer: Form 1040
Form 1040 is the standard US individual income tax return form.
Question 3: Which of the following is considered ordinary income for federal tax purposes?
- Long-term capital gains
- Qualified dividends
- Wages and salaries (Correct answer)
- Tax-exempt bond interest
Correct answer: Wages and salaries
Wages and salaries are taxed as ordinary income at regular marginal tax rates.
Question 4: What is the top marginal federal income tax rate for individuals in 2024?
- 32%
- 35%
- 37% (Correct answer)
- 39.6%
Correct answer: 37%
The top marginal federal income tax rate for individuals is 37% as of 2024.
Question 5: Which filing status generally results in the lowest tax liability for an eligible taxpayer?
- Single
- Married Filing Separately
- Married Filing Jointly (Correct answer)
- Head of Household
Correct answer: Married Filing Jointly
Married Filing Jointly typically provides the lowest tax liability due to wider tax brackets and higher standard deductions.
Question 6: Alimony received under a divorce agreement finalized after December 31, 2018 is treated how for federal income tax purposes?
- Taxable as ordinary income
- Tax-exempt (Correct answer)
- Taxed as capital gains
- Subject to self-employment tax
Correct answer: Tax-exempt
Under the Tax Cuts and Jobs Act, alimony received under post-2018 agreements is no longer includable in the recipient's gross income.
CTA Individual Income Tax 1
What is the standard deduction for a single filer for tax year 2024?