Exam 4: Adjustments for Adjusted Gross Income

Rena had the following moving expenses during 2014: 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 2014 return?

Eligible educators can deduct up to $250 of qualified educational expenses as an above-the-line deduction.

A Health Savings Account (HSA)is a tax-exempt savings account to pay for qualified medical expenses.

What are the two limitations associated with the deduction for health insurance for self-employed individuals?

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

What is an "eligible educational institution" as it relates to the deductibility of student loan interest?

Deductible moving expenses may include moving household goods and personal effects from the old residence to the new residence.

Which of the following is deductible as a moving expense?

Self-employed persons are allowed a for AGI deduction equal to one-half of the self-employment tax imposed.

If a taxpayer incurs an early withdrawal of savings penalty,the taxpayer is entitled to report the penalty as a for AGI deduction on Form 1040.

Is the self-employed health insurance deduction available to individuals other than self-employed taxpayers? If so,to whom is it available?

The deduction for self-employment taxes in 2014 is deductible as an above-the-line deduction at a rate of 7.65% based on the employer's portion of the taxes.

For 2014,taxpayers are eligible to take a student loan interest deduction of up to:

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?

Paola is a freshman in the UC-Davis degree program in veterinary medicine.In 2014,Paola paid $3,000 in tuition,$500 for books,and $250 for supplies for class.Paola also paid room and board of $3,500.What is the total qualifying education expense for the student loan interest deduction for Paola in 2014?

An eligible educator for the educator expense deduction must work at least 600 hours during the school year.

In 2013,Robert,who is single,received his Bachelor's degree and started working.In 2014,he began paying interest on qualified education loans and had modified AGI of $70,000.He paid interest of $1,200 in 2014.Which of the following statements is correct?

For family coverage in 2014,the maximum deductible and out of pocket expense to a Health Savings Account is:

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.

Sharon is a self-employed hair stylist and had net earnings from self-employment of $4,100.She paid $375 per month for health insurance over the last year.Sharon is entitled to a for AGI deduction for health insurance premiums of: