Exam 4: Adjustments for Adjusted Gross Income

To be eligible to fund a Health Savings Account (HSA),a taxpayer must be self-employed,or an employee (or spouse)of an employer who maintains a high deductible health plan,or an employee of a company that offers no health coverage and the employee has purchased a high deductible health plan on his or her own.

(True/False)

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Question 21

For the interest on a student loan to qualify for the student loan interest deduction,the student must be enrolled full-time.

(True/False)

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Question 22

Expenses for home schooling or for non-athletic supplies for health or physical education courses qualify for the education expense deduction.

(True/False)

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Question 23

A qualified education loan is one incurred by the taxpayer solely to pay qualified education expenses incurred on behalf of the:

(Multiple Choice)

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Question 24

Sade,who is single and self-employed as a graphic artist,had net earnings from self-employment of $7,250 for the year.She paid $285 a month for health insurance premiums over the last year.Sade is entitled to a for AGI deduction for health insurance of:

(Multiple Choice)

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Question 25

Mike and Karen were divorced.Their only marital property was a personal residence with a fair market value of $1.5 million and a cost of $575,000.Under the terms of the divorce agreement,Mike would receive the house and Mike would pay Karen $150,000 each year for 5 years,or until Karen's death,whichever should occur first.Mike and Karen were not living together when the payments were made by Mike.Mike paid the $750,000 to Karen over the five-year period.Mike's recognized gain from the transfer of the house to him is:

(Multiple Choice)

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Question 26

Under a divorce agreement executed in 2017,periodic payments of either cash or property must be made at regular intervals to be deductible as alimony.

(True/False)

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Question 27

The cost of self-employed health insurance premiums are deductible above-the line at a rate of 80% of the cost.

(True/False)

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Question 28

The for AGI deduction for the self-employment tax is based upon:

(Multiple Choice)

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Question 29

In order to meet the time test for qualifying moving expenses,a taxpayer must:

(Multiple Choice)

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Question 30

Terri,having moved from Washington State to South Carolina in the current year,met all the requirements to deduct moving expenses.Which of the following expenses that she incurred is not deductible as qualified moving expenses?

(Multiple Choice)

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Question 31

Under a court-ordered decree of separate maintenance executed in 2017,Pillar is required to pay her ex-husband,Miguel,$4,750 a month until their youngest son turns age 18.At that time,the required payments are reduced to $2,100 per month.How much of each payment is deductible by Pillar as alimony for 2017?

(Multiple Choice)

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Question 32

Rodrigo graduated from the University of Maryland in 2015.In 2017,to take advantage of lower interest rates,he refinanced his qualified education loans with another qualified student loan.He is not a dependent on another person's tax return.Before AGI limits,what is the maximum deduction available to him for the $3,200 he paid for educational student loan interest in 2017?

(Multiple Choice)

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Question 33

The payment of alimony has tax ramifications.These tax ramifications only affect the payor of the alimony.

(True/False)

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Question 34

There is an employment test,a distance test,and a time test that must be met in order to deduct qualifying moving expenses.

(True/False)

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Question 35

In 2016,Carlos,who is single,received his Bachelor's degree and started working.In 2017,he began paying interest on qualified education loans and had modified AGI of $70,000.He paid interest of $1,200 in 2017.Which of the following statements is correct?

(Multiple Choice)

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Question 36

In 2017,Rena accepted a new job and moved from Seattle to Pittsburgh to begin work.She incurred moving expenses for her household goods and furniture of $3,500.Prior to moving,Miguel flew to Pittsburgh to look for a new residence.The transportation and lodging for this trip to Pittsburgh was $900 and her meals were $250.The cost of her travel during the actual move to Boston was $500 which included $75 for meals.Calculate the amount of Rena's moving expense deduction for 2017.

(Essay)

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Question 37

For 2017,the maximum deductible and annual out-of-pocket expenses for family coverage on a high deductible health plan for a Health Savings Account is:

(Multiple Choice)

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Question 38

For 2017,the amount of the student loan interest deduction is limited to $3,500.

(True/False)

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Question 39

The self-employment tax is calculated on:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 112

For the interest on a student loan to qualify for the student loan interest deduction,the student must be enrolled full-time.

Expenses for home schooling or for non-athletic supplies for health or physical education courses qualify for the education expense deduction.

A qualified education loan is one incurred by the taxpayer solely to pay qualified education expenses incurred on behalf of the:

Sade,who is single and self-employed as a graphic artist,had net earnings from self-employment of $7,250 for the year.She paid $285 a month for health insurance premiums over the last year.Sade is entitled to a for AGI deduction for health insurance of:

Under a divorce agreement executed in 2017,periodic payments of either cash or property must be made at regular intervals to be deductible as alimony.

The cost of self-employed health insurance premiums are deductible above-the line at a rate of 80% of the cost.

The for AGI deduction for the self-employment tax is based upon:

In order to meet the time test for qualifying moving expenses,a taxpayer must:

Terri,having moved from Washington State to South Carolina in the current year,met all the requirements to deduct moving expenses.Which of the following expenses that she incurred is not deductible as qualified moving expenses?

The payment of alimony has tax ramifications.These tax ramifications only affect the payor of the alimony.

There is an employment test,a distance test,and a time test that must be met in order to deduct qualifying moving expenses.

In 2016,Carlos,who is single,received his Bachelor's degree and started working.In 2017,he began paying interest on qualified education loans and had modified AGI of $70,000.He paid interest of $1,200 in 2017.Which of the following statements is correct?

For 2017,the maximum deductible and annual out-of-pocket expenses for family coverage on a high deductible health plan for a Health Savings Account is:

For 2017,the amount of the student loan interest deduction is limited to $3,500.

The self-employment tax is calculated on:

Introduction to Taxation, the Income Tax Formula, and Form 1040EZ

Expanded Tax Formula, forms 1040A and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Itemized Deductions

Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, Royalties, and Income From Flow- Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040,lines 48 Through 54 and Lines 66A Through 73

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Corporate Taxation

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