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Finance · CFP

CFP: Tax Planning

Income tax fundamentals, deductions, and tax-efficient strategies tested on the CFP tax planning domain.

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What is the standard deduction for a single filer in 2025?
$14,600 (adjusted annually for inflation)
What is the standard deduction for married filing jointly in 2025?
$29,200 (adjusted annually for inflation)
What is the standard deduction for head of household in 2025?
$21,900 (adjusted annually for inflation)
What is the state and local tax (SALT) deduction limit?
$10,000 per year for state, local, and property taxes combined
What is the mortgage interest deduction limit for home loans taken after December 15, 2017?
Interest on up to $750,000 of qualified residence debt
What is the long-term capital gains tax rate structure?
Three rates: 0%, 15%, or 20% depending on taxable income and filing status
How are short-term capital gains taxed?
As ordinary income at the taxpayer's marginal tax rate
What tax rate applies to qualified dividends?
Same rates as long-term capital gains: 0%, 15%, or 20%
What is adjusted gross income (AGI)?
Gross income minus above-the-line deductions like traditional IRA contributions and student loan interest
What does modified adjusted gross income (MAGI) determine?
Eligibility for and limits on certain deductions and credits like Roth IRA contributions
What is the Child Tax Credit amount per qualifying child in 2025?
$2,000 per child under age 17, with up to $1,700 refundable
At what income level does the Child Tax Credit phase out for married filing jointly?
$400,000 of modified adjusted gross income (phases out $50 per $1,000 over limit)
What is the 2025 traditional IRA contribution limit for those under age 50?
$7,000 per year
What is the catch-up contribution allowance for IRAs for those age 50 and older?
Additional $1,000 per year ($8,000 total for age 50+)
What is the 2025 employee 401(k) contribution limit?
$24,500 for those under age 50

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