Question 1

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

Question 2

In order to be eligible for the qualified tuition and related expense deduction,a qualifying student must be enrolled:

Accepted Answer

A) For at least one course. 
B) At least half time. 
C) At least three quarter time. 
D) Full-time. 
A) For at least one course. 
B) At least half time. 
C) At least three quarter time. 
D) Full-time.

Question 3

In lieu of making cash payments of alimony directly to a former spouse,payments to a third party on behalf of the former spouse can qualify as alimony.

Accepted Answer

A) True 
 B)False

Question 4

For 2014,the maximum amount of deductible student loan interest is $2,500.

Accepted Answer

A) True 
 B)False

Question 5

In 2010 through 2013,Shannon borrowed a total of $35,000 for higher education expenses on qualified education loans while supporting herself with a full-time job.In 2014,she had modified adjusted gross income of $50,000.The first year interest on the loan was $850.The amount that Shannon can claim on her tax return is:

Accepted Answer

A) $ 0. 
B) $425. 
C) $640. 
D) $850. 
A) $ 0. 
B) $425. 
C) $640. 
D) $850.

Question 6

Self-employment tax is calculated on the gross earnings of the business.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

If a taxpayer withdraws his or her deposit on a CD before the instrument matures,the penalty for the early withdrawal on interest will be reported by the financial institution:

Accepted Answer

A) On Form EWIP. 
B) In Box 2 of Form 1099-INT. 
C) In a letter of notification. 
D) None of the above. 
A) On Form EWIP. 
B) In Box 2 of Form 1099-INT. 
C) In a letter of notification. 
D) None of the above.

Question 9

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

Accepted Answer

A) net earnings of the business. 
B) gross earnings of the business. 
C) total of 7.65% of FICA taxes. 
D) total of itemized deductions. 
A) net earnings of the business. 
B) gross earnings of the business. 
C) total of 7.65% of FICA taxes. 
D) total of itemized deductions.

Question 10

If a divorce agreement executed in 2014 specifies that a portion of the amount of an alimony payment is contingent upon the status of a child,that portion is considered to be a child support payment.

Accepted Answer

A) True 
 B)False

Question 11

The Oroscos were granted a decree of divorce effective January 1,2014.In accordance with the decree,César Orosco is to pay his wife $24,000 a year until their only child,Ricardo now 11,turns 18,and then the payments will decrease by $11,000 per year.For 2014,how much can César deduct as alimony?

Accepted Answer

A) $11,000. 
B) $13,000. 
C) $35,000. 
D) None of the above. 
A) $11,000. 
B) $13,000. 
C) $35,000. 
D) None of the above.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) The cost of moving household goods. 
B) Lodging for household members during the move. 
C) Transportation expenses during the move. 
D) Pre-move house hunting expenses. 
A) The cost of moving household goods. 
B) Lodging for household members during the move. 
C) Transportation expenses during the move. 
D) Pre-move house hunting expenses.

Question 15

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 16

In 2010 through 2013,Rory borrowed a total of $30,000 for higher education expenses on qualified education loans.In 2014,while still living at home and being claimed by his parents as a dependent,he began making payments on the loan.The first year interest on the loan was reported as $1,750.The amount that Rory can claim on his tax return is:

Accepted Answer

A) $ 0. 
B) $1,500. 
C) $1,750. 
D) .$2,500. 
A) $ 0. 
B) $1,500. 
C) $1,750. 
D) .$2,500.

Question 17

Rick and Lenora were granted a divorce in 2013.In accordance with the decree,Rick made the following payments to Lenora in 2014: Child support payments contingent on the age of the child $4,000
Annual cash payments other than child support 6,000
How much should Lenora include in her 2014 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 18

The self-employment tax is calculated on:

Accepted Answer

A) Form 1040. 
B) Schedule C. 
C) Form SE. 
D) Schedule D. 
A) Form 1040. 
B) Schedule C. 
C) Form SE. 
D) Schedule D.

Question 19

An early withdrawal penalty is reported on Form:

Accepted Answer

A) W-2. 
B) 1098. 
C) 1099-DIV. 
D) 1099-INT. 
A) W-2. 
B) 1098. 
C) 1099-DIV. 
D) 1099-INT.

Question 20

David,who is single,received his degree in 2013,and took a job earning $62,500 per year.In 2013,he was required to begin making payments on his qualified education loans.In 2014 he paid $1,350 in interest on those loans.How much can he claim as an educational loan interest deduction for the year?

Accepted Answer

Since David is under the modif

The early withdrawal penalty is deductible as an:

In order to be eligible for the qualified tuition and related expense deduction,a qualifying student must be enrolled:

In lieu of making cash payments of alimony directly to a former spouse,payments to a third party on behalf of the former spouse can qualify as alimony.

For 2014,the maximum amount of deductible student loan interest is $2,500.

Self-employment tax is calculated on the gross earnings of the business.

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

If a taxpayer withdraws his or her deposit on a CD before the instrument matures,the penalty for the early withdrawal on interest will be reported by the financial institution:

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

If a divorce agreement executed in 2014 specifies that a portion of the amount of an alimony payment is contingent upon the status of a child,that portion is considered to be a child support payment.

The Oroscos were granted a decree of divorce effective January 1,2014.In accordance with the decree,César Orosco is to pay his wife $24,000 a year until their only child,Ricardo now 11,turns 18,and then the payments will decrease by $11,000 per year.For 2014,how much can César deduct as alimony?

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

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

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

Which of the following is not a deductible alimony payment?

The self-employment tax is calculated on:

An early withdrawal penalty is reported on Form:

David,who is single,received his degree in 2013,and took a job earning $62,500 per year.In 2013,he was required to begin making payments on his qualified education loans.In 2014 he paid $1,350 in interest on those loans.How much can he claim as an educational loan interest deduction for the year?

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

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 early withdrawal penalty is deductible as an:

In order to be eligible for the qualified tuition and related expense deduction,a qualifying student must be enrolled:

In lieu of making cash payments of alimony directly to a former spouse,payments to a third party on behalf of the former spouse can qualify as alimony.

For 2014,the maximum amount of deductible student loan interest is $2,500.

Self-employment tax is calculated on the gross earnings of the business.

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

If a taxpayer withdraws his or her deposit on a CD before the instrument matures,the penalty for the early withdrawal on interest will be reported by the financial institution:

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

If a divorce agreement executed in 2014 specifies that a portion of the amount of an alimony payment is contingent upon the status of a child,that portion is considered to be a child support payment.

The Oroscos were granted a decree of divorce effective January 1,2014.In accordance with the decree,César Orosco is to pay his wife $24,000 a year until their only child,Ricardo now 11,turns 18,and then the payments will decrease by $11,000 per year.For 2014,how much can César deduct as alimony?

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

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

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

Which of the following is not a deductible alimony payment?

The self-employment tax is calculated on:

An early withdrawal penalty is reported on Form:

David,who is single,received his degree in 2013,and took a job earning $62,500 per year.In 2013,he was required to begin making payments on his qualified education loans.In 2014 he paid $1,350 in interest on those loans.How much can he claim as an educational loan interest deduction for the year?

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

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