Weber resides in a state that imposes a tax on income. The following information relating to Weber's state income taxes is available: $\begin{array}{llcc} \text { State income taxes withhel d in 2019 } &\$3,000\\ \text { State sal es taxes paid} &\$650\\ \text { Refund received in 2019 for 2018 tax } &\$300\\ \text { Assessment paid in 2019 for 2017 tax } &\$800\\ \end{array}$ What amount should Weber use as state and local income taxes in calculating itemized deductions for his 2019 Federal income tax return?

A) $2,700 B) $3,000 C) $3,500 D) $3,800 E) None of these A) $2,700 B) $3,000 C) $3,500 D) $3,800 E) None of these

During the current year, George, a salaried taxpayer, paid the following taxes which were not incurred in connection with a trade or business: \[\begin{array} { l r } \text { Federal income tax (withheld by employer) } & \$ 1,500 \\ \text { State income tax (withheld by employer) } & \$ 1,100 \\ \text { FICA tax (withheld by employer) } & \$ 700 \\ \text { Real property taxes } & \$ 300 \\ \text { Federal auto gasoline taxes } & \$ 200 \\ \text { Federal excise tax on telephone bills } & \$ 50 \end{array}\] What amount can George claim for the current year as an itemized deduction for the taxes paid, assuming he deducts state and local income taxes?

A) $1,100 B) $1,150 C) $1,400 D) $2,000 E) None of these A) $1,100 B) $1,150 C) $1,400 D) $2,000 E) None of these

Douglas and Dena paid the following amounts of interest during the current year: \[\begin{array} { l r } \text { Qualified home mortgage interest } & \$ 14,000 \\ \text { Other consumer interest } & \$ 5,000 \\ \text { Investment interest } & \$ 10,000 \\ \text { (no investment income) } & \end{array}\] a.Calculate the amount of their allowable deduction for investment interest for the current year. b.Calculate the amount of Douglas and Dena's total allowable deduction for interest for the current year.

The answer of Douglas and Dena paid the following amounts...

For 2019, Eugene and Linda had adjusted gross income of $30,000. Additional information for 2019 is as follows. \[\begin{array} { l r } \text { Cash contribution to church } & \$ 1,600 \\ \text { Tuition paid to a parochi al school } & \$ 1,200 \\ \text { Contribution to a qualified charity } & \$ 400 \\ \text { Cash contribution to a needy family } & \$ 100 \end{array}\] What is the maximum amount they can deduct for charitable contributions in 2019?

A) $500 B) $1,600 C) $1,700 D) $2,000 E) None of these A) $500 B) $1,600 C) $1,700 D) $2,000 E) None of these

Exam 5: Deductions for and From AGI

Weber resides in a state that imposes a tax on income. The following information relating to Weber's state income taxes is available: State income taxes withhel d in 2019 \3 ,000 State sal es taxes paid \6 50 Refund received in 2019 for 2018 tax \3 00 Assessment paid in 2019 for 2017 tax \8 00 What amount should Weber use as state and local income taxes in calculating itemized deductions for his 2019 Federal income tax return?

(Multiple Choice)

4.9/5

(79)

Question 41

What is the maximum amount a 55-year-old taxpayer and a 48-year-old spouse can put into a Traditional or Roth IRA for 2019, assuming they earn $85,000 in total and are not participants in pension plans?

(Essay)

4.8/5

(68)

Question 42

Which of the following charitable contributions is not tax deductible?

(Multiple Choice)

5.0/5

(78)

Question 43

Andy borrows $20,000 to invest in bonds. During the current year, his interest on the loan is $2,000. Andy's interest income from the bonds is $400 and his investment expenses are $300. a.Calculate Andy's itemized deduction for investment interest for this year. b.Is Andy entitled to a deduction in future years?

(Essay)

4.8/5

(92)

Question 44

Which of the following is not deductible as a medical expense on Schedule A?

(Multiple Choice)

4.9/5

(78)

Question 45

During the current year, George, a salaried taxpayer, paid the following taxes which were not incurred in connection with a trade or business: Federal income tax (withheld by employer) \ 1,500 State income tax (withheld by employer) \ 1,100 FICA tax (withheld by employer) \ 700 Real property taxes \ 300 Federal auto gasoline taxes \ 200 Federal excise tax on telephone bills \ 50 What amount can George claim for the current year as an itemized deduction for the taxes paid, assuming he deducts state and local income taxes?

(Multiple Choice)

4.9/5

(73)

Question 46

A 42-year-old single taxpayer earning a salary of $138,000 a year can make which of the following IRA contributions if he is not covered by a plan at work?

(Multiple Choice)

4.8/5

(80)

Question 47

If an employer makes a contribution to a qualified retirement plan on behalf of an employee, the amount is currently deductible by the employer, and the employee must include the amount in gross income at the time the contribution is made.

(True/False)

4.8/5

(93)

Question 48

Barrett is a 45-year-old political commentator who has self-employed net earned income of $170,000 in 2019. What is the maximum amount he can deduct for contributions to his simplified employee pension (SEP) for the year?

(Essay)

4.8/5

(67)

Question 49

Which of the following is not considered a deductible medical expense?

(Multiple Choice)

4.8/5

(89)

Question 50

Jake developed serious health problems and had his bathroom remodeled so it is wheelchair-accessible and had a handicapped shower installed, based on a written prescription by his doctor. The cost of the remodel is $15,000 and is deemed to add no value to his house by a real estate appraiser. How is the cost of the remodel treated on Jake's tax return?

(Essay)

4.9/5

(68)

Question 51

During 2019, Sarah, age 29, had adjusted gross income of $12,000 and paid the following amounts for medical expenses: Medical insurance \ 400 Prescription medications \ 160 Hospital bills \ 575 Doctors' bills \ 310 Dental bills \ 180 In 2019, Sarah drove 125 miles for medical transportation in her personal automobile, and she uses the standard mileage allowance. Her insurance company reimbursed Sarah $300 during the year for the above medical expenses. Using the schedule below, calculate the amount of Sarah's deduction for medical and dental expenses for the 2019 tax year. $During 2019, Sarah, age 29, had adjusted gross income of $12,000 and paid the following amounts for medical expenses: \begin{array} { l l } \text { Medical insurance } & \$ 400 \\ \text { Prescription medications } & \$ 160 \\ \text { Hospital bills } & \$ 575 \\ \text { Doctors' bills } & \$ 310 \\ \text { Dental bills } & \$ 180 \end{array} In 2019, Sarah drove 125 miles for medical transportation in her personal automobile, and she uses the standard mileage allowance. Her insurance company reimbursed Sarah $300 during the year for the above medical expenses. Using the schedule below, calculate the amount of Sarah's deduction for medical and dental expenses for the 2019 tax year.$

(Essay)

4.9/5

(70)

Question 52

Which of the following taxes is not deductible as an itemized deduction?

(Multiple Choice)

5.0/5

(85)

Question 53

A taxpayer may donate the free use of property to a charitable organization and deduct the value as an itemized deduction.

(True/False)

4.9/5

(68)

Question 54

The interest paid on a loan used to acquire municipal bonds is not deductible.

(True/False)

4.9/5

(87)

Question 55

Douglas and Dena paid the following amounts of interest during the current year: Qualified home mortgage interest \ 14,000 Other consumer interest \ 5,000 Investment interest \ 10,000 (no investment income) a.Calculate the amount of their allowable deduction for investment interest for the current year. b.Calculate the amount of Douglas and Dena's total allowable deduction for interest for the current year.

(Essay)

4.8/5

(69)

Question 56

Foreign income taxes paid are deductible.

(True/False)

4.9/5

(78)

Question 57

Steven is 27 years old and has a total AGI of $110,000 in 2019. He contracts pneumonia in 2019 and incurs a medical bill that totals $7,500. He withdraws $7,500 from his traditional IRA to pay the bill. Which of the following is true?

(Multiple Choice)

4.9/5

(71)

Question 58

Jim lives in California. What is Jim's deadline for making a contribution to traditional IRA or a Roth IRA for 2019?

(Multiple Choice)

4.7/5

(82)

Question 59

For 2019, Eugene and Linda had adjusted gross income of $30,000. Additional information for 2019 is as follows. Cash contribution to church \ 1,600 Tuition paid to a parochi al school \ 1,200 Contribution to a qualified charity \ 400 Cash contribution to a needy family \ 100 What is the maximum amount they can deduct for charitable contributions in 2019?

(Multiple Choice)

4.8/5

(83)

Question 60

Showing 41 - 60 of 130

What is the maximum amount a 55-year-old taxpayer and a 48-year-old spouse can put into a Traditional or Roth IRA for 2019, assuming they earn $85,000 in total and are not participants in pension plans?

Which of the following charitable contributions is not tax deductible?

Which of the following is not deductible as a medical expense on Schedule A?

A 42-year-old single taxpayer earning a salary of $138,000 a year can make which of the following IRA contributions if he is not covered by a plan at work?

If an employer makes a contribution to a qualified retirement plan on behalf of an employee, the amount is currently deductible by the employer, and the employee must include the amount in gross income at the time the contribution is made.

Barrett is a 45-year-old political commentator who has self-employed net earned income of $170,000 in 2019. What is the maximum amount he can deduct for contributions to his simplified employee pension (SEP) for the year?

Which of the following is not considered a deductible medical expense?

Which of the following taxes is not deductible as an itemized deduction?

A taxpayer may donate the free use of property to a charitable organization and deduct the value as an itemized deduction.

The interest paid on a loan used to acquire municipal bonds is not deductible.

Foreign income taxes paid are deductible.

Steven is 27 years old and has a total AGI of $110,000 in 2019. He contracts pneumonia in 2019 and incurs a medical bill that totals $7,500. He withdraws $7,500 from his traditional IRA to pay the bill. Which of the following is true?

Jim lives in California. What is Jim's deadline for making a contribution to traditional IRA or a Roth IRA for 2019?

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses

Additional Income and the Qualified Business Income Deduction

Accounting Periods and Other Taxes

Tax Credits

Depreciation and Sale of Business Property

Payroll, Estimated Payments and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters