Question 1

The student loan interest deduction may be limited based on the modified AGI of the taxpayer.

Accepted Answer

A) True 
 B)False

Question 2

In order to qualify for a moving expense deduction,taxpayers must meet three tests.What are they?

Accepted Answer

The following three tests must be met fo

Question 3

Are any moving expenses deductible other than those incurred directly for the taxpayer? If so,what are the requirements for deductibility?

Accepted Answer

Moving expenses of persons other than th

Question 4

In order to meet the distance test criteria for qualifying moving expenses,the new job location must be:

Accepted Answer

A) 100 miles from the old residence. 
B) 100 miles from the old job location. 
C) at least 50 miles farther than the old residence was from the old job location. 
D) at least 50 miles farther than the new residence from the old job location. 
A) 100 miles from the old residence. 
B) 100 miles from the old job location. 
C) at least 50 miles farther than the old residence was from the old job location. 
D) at least 50 miles farther than the new residence from the old job location.

Question 5

Sumiko files her tax return married filing separately.She has not lived with her husband for over two years.Beginning in January 2017,by court ordered decree,she is to pay her husband $600 per month as separate maintenance.For 2017 how much will she be able to deduct as alimony?

Accepted Answer

A) $7,200. 
B) $3,600. 
C) $600. 
D) $0. 
A) $7,200. 
B) $3,600. 
C) $600. 
D) $0.

Question 6

Which of the following types of income is subject to the self-employment tax?

Accepted Answer

A) Income from a sole proprietor's coffee shop. 
B) Gain on the sale of a home. 
C) W-2 income. 
D) Interest earned on a bank account. 
A) Income from a sole proprietor's coffee shop. 
B) Gain on the sale of a home. 
C) W-2 income. 
D) Interest earned on a bank account.

Question 7

Renee and Thomas obtained a divorce effective May 1,2017.In accordance with the divorce decree,Renee was required to pay Thomas alimony of $2,500 per month (payments were to stop only in the event of his death or remarriage).Furthermore,she was to transfer title of their house which had a cost of $150,000 and a fair value of $200,000 on the date of transfer,and was to continue making the monthly mortgage payments of $1,500.
(a)Determine the amount of Renee's alimony deduction in 2017.
(b)Determine the amount of Thomas's alimony income in 2017.
(c)Assume that Renee was required to pay off the remaining mortgage balance in the event that Thomas died.Does Rene's alimony deduction in 2017 change? Why or why not?

Accepted Answer

(a)Renee would report alimony payments o

Question 8

For 2017,taxpayers are eligible to take a maximum student loan interest deduction of up to:

Accepted Answer

A) $3,000. 
B) $2,800. 
C) $2,500. 
D) $2,150. 
A) $3,000. 
B) $2,800. 
C) $2,500. 
D) $2,150.

Question 9

Which of the following is not a deductible alimony payment?

Accepted Answer

A) Payments for child support required by the divorce decree. 
B) Payments for life insurance premiums required by the divorce decree. 
C) Half of the mortgage payment on a home jointly owned with the ex-spouse when required by the decree of divorce. 
D) Payments for dental expenses of the ex-spouse under terms of the divorce agreement. 
A) Payments for child support required by the divorce decree. 
B) Payments for life insurance premiums required by the divorce decree. 
C) Half of the mortgage payment on a home jointly owned with the ex-spouse when required by the decree of divorce. 
D) Payments for dental expenses of the ex-spouse under terms of the divorce agreement.

Question 10

Roberto files his tax return as married filing separately.He has not lived with his wife for over three years.In the current year,by order of the court,he paid her $500 per month for 12 months as separate maintenance.He will be able to deduct $6,000 as alimony for the year.

Accepted Answer

A) True 
 B)False

Question 11

The early withdrawal penalty is deductible as an:

Accepted Answer

A) itemized deduction on Schedule A. 
B) above-the-line deduction for AGI. 
C) adjustment on Schedule B. 
D) none of these. 
A) itemized deduction on Schedule A. 
B) above-the-line deduction for AGI. 
C) adjustment on Schedule B. 
D) none of these.

Question 12

Which of the following is not deductible as a moving expense?

Accepted Answer

A) The cost of a pre-move house hunting trip. 
B) Travel expenses during the move. 
C) Lodging for household members during the move. 
D) The cost of moving household goods. 
A) The cost of a pre-move house hunting trip. 
B) Travel expenses during the move. 
C) Lodging for household members during the move. 
D) The cost of moving household goods.

Question 13

Rena had the following moving expenses during 2017: $\begin{array}{lr}
\text { Cost of packing and transporting her household goods }&\$1,500\
\text {Lodging for travel between the old home and new home }&\$600\
\text { Meals incurred during the trip}&\$175\
\end{array}$
 Rena moved to start a new job and met all the required tests for moving expense deductibility.What is the total amount of moving expenses that can be deducted on her 2017 return?

Accepted Answer

A) $2,275. 
B) $1,675. 
C) $2,100. 
D) $600. 
A) $2,275. 
B) $1,675. 
C) $2,100. 
D) $600.

Question 14

Jena is a self-employed fitness trainer who had net earnings from self-employment of $53,500.She paid $525 per month for health insurance over the entire last year.Jena is entitled to a for AGI deduction for health insurance of:

Accepted Answer

A) $0. 
B) $5,250. 
C) $6,300. 
D) $6,500. 
A) $0. 
B) $5,250. 
C) $6,300. 
D) $6,500.

Question 15

Rick and Lenora were granted a divorce in 2016.In accordance with the decree,Rick made the following payments to Lenora in 2017: $\begin{array}{lr}
\text {Child support payments contingent on the age of the child }&\$4,000\
\text {Annual cash payments other than child support }&\$6,000\
\end{array}$
 How much should Lenora include in her 2017 taxable income as alimony?

Accepted Answer

A) $10,000. 
B) $6,000. 
C) $4,000. 
D) $0. 
A) $10,000. 
B) $6,000. 
C) $4,000. 
D) $0.

Question 16

Under the terms of a divorce agreement,Bev was to pay her husband Leon $4,000 per month in alimony and $1,500 per month in child support.For a twelve-month period,what is the amount that Bev can deduct from gross income and Leon must include in gross income?

Accepted Answer

A) $0. 
B) $18,000. 
C) $48,000. 
D) $66,000. 
A) $0. 
B) $18,000. 
C) $48,000. 
D) $66,000.

Question 17

Qualified education expenses for the purpose of deductible student loan interest include expenses for:

Accepted Answer

A) Tuition and fees. 
B) Books. 
C) Room and board. 
D) All of these. 
A) Tuition and fees. 
B) Books. 
C) Room and board. 
D) All of these.

Question 18

For 2017,eligible educators can deduct up to $250 of qualified educational expenses as an above-the-line deduction.

Accepted Answer

A) True 
 B)False

Question 19

For a taxpayer to be eligible to fund a Health Savings Account (HSA),he or she must be:

Accepted Answer

A) An employee of a company that offers no health coverage and the employee has purchased a high deductible health plan on their own. 
B) A self-employed individual. 
C) An employee (or spouse)who works for an employer with a high deductible health plan. 
D) All of these. 
A) An employee of a company that offers no health coverage and the employee has purchased a high deductible health plan on their own. 
B) A self-employed individual. 
C) An employee (or spouse)who works for an employer with a high deductible health plan. 
D) All of these.

Question 20

Which of the following expenses does not qualify as a moving expense?

Accepted Answer

A) Lodging. 
B) Travel expenses. 
C) House hunting expenses. 
D) Transportation of household goods. 
A) Lodging. 
B) Travel expenses. 
C) House hunting expenses. 
D) Transportation of household goods.

The student loan interest deduction may be limited based on the modified AGI of the taxpayer.

In order to qualify for a moving expense deduction,taxpayers must meet three tests.What are they?

Are any moving expenses deductible other than those incurred directly for the taxpayer? If so,what are the requirements for deductibility?

In order to meet the distance test criteria for qualifying moving expenses,the new job location must be:

Sumiko files her tax return married filing separately.She has not lived with her husband for over two years.Beginning in January 2017,by court ordered decree,she is to pay her husband $600 per month as separate maintenance.For 2017 how much will she be able to deduct as alimony?

Which of the following types of income is subject to the self-employment tax?

For 2017,taxpayers are eligible to take a maximum student loan interest deduction of up to:

Which of the following is not a deductible alimony payment?

Roberto files his tax return as married filing separately.He has not lived with his wife for over three years.In the current year,by order of the court,he paid her $500 per month for 12 months as separate maintenance.He will be able to deduct $6,000 as alimony for the year.

The early withdrawal penalty is deductible as an:

Which of the following is not deductible as a moving expense?

Jena is a self-employed fitness trainer who had net earnings from self-employment of $53,500.She paid $525 per month for health insurance over the entire last year.Jena is entitled to a for AGI deduction for health insurance of:

Under the terms of a divorce agreement,Bev was to pay her husband Leon $4,000 per month in alimony and $1,500 per month in child support.For a twelve-month period,what is the amount that Bev can deduct from gross income and Leon must include in gross income?

Qualified education expenses for the purpose of deductible student loan interest include expenses for:

For 2017,eligible educators can deduct up to $250 of qualified educational expenses as an above-the-line deduction.

For a taxpayer to be eligible to fund a Health Savings Account (HSA),he or she must be:

Which of the following expenses does not qualify as a moving expense?

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

Filters

Exam 4: Adjustments for Adjusted Gross Income

The student loan interest deduction may be limited based on the modified AGI of the taxpayer.

In order to qualify for a moving expense deduction,taxpayers must meet three tests.What are they?

Are any moving expenses deductible other than those incurred directly for the taxpayer? If so,what are the requirements for deductibility?

In order to meet the distance test criteria for qualifying moving expenses,the new job location must be:

Sumiko files her tax return married filing separately.She has not lived with her husband for over two years.Beginning in January 2017,by court ordered decree,she is to pay her husband $600 per month as separate maintenance.For 2017 how much will she be able to deduct as alimony?

Which of the following types of income is subject to the self-employment tax?

For 2017,taxpayers are eligible to take a maximum student loan interest deduction of up to:

Which of the following is not a deductible alimony payment?

Roberto files his tax return as married filing separately.He has not lived with his wife for over three years.In the current year,by order of the court,he paid her $500 per month for 12 months as separate maintenance.He will be able to deduct $6,000 as alimony for the year.

The early withdrawal penalty is deductible as an:

Which of the following is not deductible as a moving expense?

Jena is a self-employed fitness trainer who had net earnings from self-employment of $53,500.She paid $525 per month for health insurance over the entire last year.Jena is entitled to a for AGI deduction for health insurance of:

Under the terms of a divorce agreement,Bev was to pay her husband Leon $4,000 per month in alimony and $1,500 per month in child support.For a twelve-month period,what is the amount that Bev can deduct from gross income and Leon must include in gross income?

Qualified education expenses for the purpose of deductible student loan interest include expenses for:

For 2017,eligible educators can deduct up to $250 of qualified educational expenses as an above-the-line deduction.

For a taxpayer to be eligible to fund a Health Savings Account (HSA),he or she must be:

Which of the following expenses does not qualify as a moving expense?

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

Filters