CFP Income Tax Planning Final Exam Questions and
Correct Answers | 100-Question Comprehensive
Exam | 2026 Updated | 100% Correct.
CFP Income Tax Planning Final Exam
PART 1: TAX FUNDAMENTALS & CALCULATIONS
1. A married couple filing jointly in 2024 has taxable income of $200,000. Which
tax rate applies to their income above the 22% bracket threshold?
A) 24%
B) 28%
C) 32%
D) 35%
Answer: A
Rationale: For 2024, the 24% marginal tax bracket for married filing jointly
applies to taxable income above the 22% threshold. The 2024 tax brackets are:
10%, 12%, 22%, 24%, 32%, 35%, and 37% .
2. Under the Tax Cuts and Jobs Act (TCJA) of 2017, the standard deduction for a
married couple filing jointly in 2024 is approximately:
A) $13,850
B) $27,700
C) $29,200
D) $30,000
,Answer: C
Rationale: For 2024, the standard deduction is $14,600 for single filers, $29,200
for married filing jointly, and $21,900 for head of household. These amounts are
adjusted annually for inflation .
3. Which of the following types of income is NOT subject to self-employment
tax?
A) Net earnings from sole proprietorship
B) Partnership distributive share of income
C) Rental income from real property
D) Fees received for consulting services
Answer: C
Rationale: Rental income from real property is generally not subject to self-
employment tax unless the taxpayer is a real estate professional or provides
substantial services. Self-employment tax applies to net earnings from sole
proprietorships, partnerships, and consulting fees .
4. For 2024, the maximum contribution limit for a Traditional IRA for an
individual under age 50 is:
A) $6,000
B) $6,500
C) $7,000
D) $7,500
Answer: C
Rationale: For 2024, the IRA contribution limit is $7,000 for individuals under age
50, with an additional $1,000 catch-up contribution allowed for those age 50 and
older .
, 5. The qualified business income (QBI) deduction under Section 199A allows
eligible self-employed individuals to deduct up to what percentage of qualified
business income?
A) 15%
B) 20%
C) 25%
D) 30%
Answer: B
Rationale: The Section 199A QBI deduction allows eligible taxpayers to deduct up
to 20% of qualified business income from a pass-through entity, subject to
limitations based on taxable income and type of business .
6. Which filing status generally results in the lowest overall tax liability for a
qualifying individual?
A) Single
B) Married Filing Separately
C) Head of Household
D) Married Filing Jointly
Answer: D
Rationale: Married Filing Jointly typically provides the most favorable tax brackets
and the highest standard deduction among filing statuses for married couples .
7. A taxpayer sold stock held for 14 months at a gain of $10,000. This gain is
classified as:
A) Ordinary income
B) Short-term capital gain
C) Long-term capital gain
D) Passive income
Correct Answers | 100-Question Comprehensive
Exam | 2026 Updated | 100% Correct.
CFP Income Tax Planning Final Exam
PART 1: TAX FUNDAMENTALS & CALCULATIONS
1. A married couple filing jointly in 2024 has taxable income of $200,000. Which
tax rate applies to their income above the 22% bracket threshold?
A) 24%
B) 28%
C) 32%
D) 35%
Answer: A
Rationale: For 2024, the 24% marginal tax bracket for married filing jointly
applies to taxable income above the 22% threshold. The 2024 tax brackets are:
10%, 12%, 22%, 24%, 32%, 35%, and 37% .
2. Under the Tax Cuts and Jobs Act (TCJA) of 2017, the standard deduction for a
married couple filing jointly in 2024 is approximately:
A) $13,850
B) $27,700
C) $29,200
D) $30,000
,Answer: C
Rationale: For 2024, the standard deduction is $14,600 for single filers, $29,200
for married filing jointly, and $21,900 for head of household. These amounts are
adjusted annually for inflation .
3. Which of the following types of income is NOT subject to self-employment
tax?
A) Net earnings from sole proprietorship
B) Partnership distributive share of income
C) Rental income from real property
D) Fees received for consulting services
Answer: C
Rationale: Rental income from real property is generally not subject to self-
employment tax unless the taxpayer is a real estate professional or provides
substantial services. Self-employment tax applies to net earnings from sole
proprietorships, partnerships, and consulting fees .
4. For 2024, the maximum contribution limit for a Traditional IRA for an
individual under age 50 is:
A) $6,000
B) $6,500
C) $7,000
D) $7,500
Answer: C
Rationale: For 2024, the IRA contribution limit is $7,000 for individuals under age
50, with an additional $1,000 catch-up contribution allowed for those age 50 and
older .
, 5. The qualified business income (QBI) deduction under Section 199A allows
eligible self-employed individuals to deduct up to what percentage of qualified
business income?
A) 15%
B) 20%
C) 25%
D) 30%
Answer: B
Rationale: The Section 199A QBI deduction allows eligible taxpayers to deduct up
to 20% of qualified business income from a pass-through entity, subject to
limitations based on taxable income and type of business .
6. Which filing status generally results in the lowest overall tax liability for a
qualifying individual?
A) Single
B) Married Filing Separately
C) Head of Household
D) Married Filing Jointly
Answer: D
Rationale: Married Filing Jointly typically provides the most favorable tax brackets
and the highest standard deduction among filing statuses for married couples .
7. A taxpayer sold stock held for 14 months at a gain of $10,000. This gain is
classified as:
A) Ordinary income
B) Short-term capital gain
C) Long-term capital gain
D) Passive income
