Question 1

Self employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self employment taxes paid.

Accepted Answer

A) True 
 B)False

Question 2

This fall, Josh paid $5,000 for his tuition and fees at State University (a qualified education institution). Assume that Josh is Marsha and Jeff's son and that Marsha and Jeff claim Josh as a dependent. Marsha and Jeff's modified AGI is $100,000. How much of Josh's $5,000 tuition and fees payments can Marsha and Jeff deduct this year (assume the 2013 rules apply for purposes of the qualified education expense deduction)?

Accepted Answer

A)  Marsha and Jeff can deduct $5,000 for AGI. 
B)  Marsha and Jeff can deduct $4,000 for AGI. 
C)  Marsha and Jeff can deduct $2,500 for AGI. 
D)  Marsha and Jeff can deduct $2,000 for AGI. 
E)  None - the tuition is not deductible by Marsha and Jeff. 
A)  Marsha and Jeff can deduct $5,000 for AGI. 
B)  Marsha and Jeff can deduct $4,000 for AGI. 
C)  Marsha and Jeff can deduct $2,500 for AGI. 
D)  Marsha and Jeff can deduct $2,000 for AGI. 
E)  None - the tuition is not deductible by Marsha and Jeff.

Question 3

Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2014?

Accepted Answer

A)  $10,650 
B)  $9,100 
C)  $10,300 
D)  $12,200 
E)  $1,550. 
A)  $10,650 
B)  $9,100 
C)  $10,300 
D)  $12,200 
E)  $1,550.

Question 4

Ned is a head of household with a dependent son, Todd, who is a full-time student. This year Ned made the following expenditures related to Todd's support: $$\begin{array} { l r } 
\text { Auto insurance premiums } & \$ 1,700 \
\text { Room and board at Todd's school } & 2,200 \
\text { Health insurance premiums (not through an exchange) } & 600 \
\text { Travel (to and from school) } & 350
\end{array}$$ What amount can Ned include in his itemized deductions?

Accepted Answer

A)  $1,700 included in Ned's miscellaneous itemized deductions 
B)  $2,050 included in Ned's miscellaneous itemized deductions 
C)  $950 included in Ned's miscellaneous itemized deductions 
D)  $600 included in Ned's medical expenses 
E)  None of these. 
A)  $1,700 included in Ned's miscellaneous itemized deductions 
B)  $2,050 included in Ned's miscellaneous itemized deductions 
C)  $950 included in Ned's miscellaneous itemized deductions 
D)  $600 included in Ned's medical expenses 
E)  None of these.

Question 5

Colby is employed full time as a food technician for a local restaurant chain. This year he has incurred the following expenses associated with his employment: $$\begin{array} { l r } 
\text { Transportation between various restaurants } & \$ 280 \
\text { Technician uniforms (not adaptable to daily wear) } & 310 \
\text { Professional dues and license } & 1,200
\end{array}$$ Colby was reimbursed $125 of the expenses from his employer's accountable plan. What amount can he include with his remaining itemized deductions if his AGI this year is $32,000?

Accepted Answer

$1,025 = [($280 + $3

Question 6

Brice is a single, self-employed electrician who earns $60,000 per year in self-employment income. Brice paid the following expenses this year. Which of the expenses are deductible for AGI? 1. The cost of health insurance (not purchased through an exchange)
2) The employer portion of self-employment tax paid
3) Penalty on early withdrawal of funds from a certificate of deposit

Accepted Answer

A)  Numbers 1 and 2 only. 
B)  Numbers 1 and 3 only. 
C)  Numbers 2 and 3 only. 
D)  None of these is deductible for AGI. 
E)  All of these are deductible for AGI 
A)  Numbers 1 and 2 only. 
B)  Numbers 1 and 3 only. 
C)  Numbers 2 and 3 only. 
D)  None of these is deductible for AGI. 
E)  All of these are deductible for AGI

Question 7

This year Amanda paid $749 in Federal gift taxes on a gratuitous transfer to her nephew. Amanda lives in Texas and does not pay any state or local income taxes. Which of the following is a true statement?

Accepted Answer

A)  Amanda cannot deduct Federal gift taxes. 
B)  Amanda can deduct Federal gift taxes for AGI. 
C)  Amanda can deduct Federal gift taxes paid as an itemized deduction. 
D)  Amanda must include Federal gift taxes with other miscellaneous itemized deductions. 
E)  None of these is true. 
A)  Amanda cannot deduct Federal gift taxes. 
B)  Amanda can deduct Federal gift taxes for AGI. 
C)  Amanda can deduct Federal gift taxes paid as an itemized deduction. 
D)  Amanda must include Federal gift taxes with other miscellaneous itemized deductions. 
E)  None of these is true.

Question 8

Don's personal auto was damaged in a wind storm this year. Don purchased the auto several years ago for $32,000 and it was worth $18,000 at the time of the storm. The damage was superficial, so Don decided not to repair the car. Although Don collected $750 from his insurance company, the value of the car dropped after the storm to $15,000. What is the amount of casualty loss from the storm damage before Don applies any floor limitations?

Accepted Answer

The answer of Don's personal auto was damaged in a...

Question 9

Which of the following is a true statement?

Accepted Answer

A)  For purposes of the deduction for educational interest, expenses do not include expenses for room, board and travel. 
B)  For purposes of the deduction for educational interest, qualified education expenses are those paid for the education of the taxpayer, the taxpayer's spouse, or a taxpayer's dependent. 
C)  The maximum deduction for interest expense on qualified education loans is $6,000. 
D)  A penalty paid for prematurely withdrawing a certificate of deposit or similar deposit is deductible as an investment expense. 
E)  All of these are false. 
A)  For purposes of the deduction for educational interest, expenses do not include expenses for room, board and travel. 
B)  For purposes of the deduction for educational interest, qualified education expenses are those paid for the education of the taxpayer, the taxpayer's spouse, or a taxpayer's dependent. 
C)  The maximum deduction for interest expense on qualified education loans is $6,000. 
D)  A penalty paid for prematurely withdrawing a certificate of deposit or similar deposit is deductible as an investment expense. 
E)  All of these are false.

Question 10

All reasonable moving expenses are deductible if the move is a minimum of 35 miles in distance.

Accepted Answer

A) True 
 B)False

Question 11

Kaylee is a self-employed investment counselor who also owns a rental property. This year, she collected $85,000 in fees and paid the following expenses: $$\begin{array} { l r } 
\text { Health insurance premiums (not through an exchange) } & \$ 4,200 \
\text { Life insurance premiums (whole life) } & 1,900 \
\text { Books on investing } & 200 \
\text { Repairs of the rental property } & 450 \
\text { Advertising for investment clients } & 1,770 \
\text { State income taxes } & 4,300 \
\text { Self employment tax (1/2 is employer share) } & 12,704
\end{array}$$ Kaylee files single with one personal exemption. Calculate her adjusted gross income.

Accepted Answer

$72,028 =

Question 12

Which of the following itemized deductions is not subject to the itemized deduction phase-out?

Accepted Answer

A)  gambling losses 
B)  mortgage interest 
C)  state income tax 
D)  charitable contributions 
E)  All of these are subject to the itemized deduction phase-out. 
A)  gambling losses 
B)  mortgage interest 
C)  state income tax 
D)  charitable contributions 
E)  All of these are subject to the itemized deduction phase-out.

Question 13

Justin and Georgia file married jointly with one dependent. This year, their AGI is $319,050. What dollar amount of personal and dependency exemptions would they be allowed to deduct this year?

Accepted Answer

The answer of Justin and Georgia file married jointly with...

Question 14

Taxpayers are allowed to deduct all ordinary and necessary expenses incurred in connection with determining their tax obligations imposed by federal authorities.

Accepted Answer

A) True 
 B)False

Question 15

Jenna (age 50) files single and reports AGI of $40,000. This year she has incurred the following medical expenses: $\begin{array}{c}
\begin{array}{lll}
\text{Dentist charges}\
\text{Physician's fees}\
\text{Cosmetic surgery}\
\text{Cost of eyeglasses}\
\text{Hospital charges}\
\text{Prescription drugs}\
\text{Over-the-counter drugs}\
\text{Medical insurance permiums (not through}\
\text{ an exchange)}\
\end{array}
\begin{array}{lll}
&&
\end{array}
\begin{array}{r}
\$ \quad 90 \
2,800 \
400 \
250 \
1,330 \
240 \
75 \
1,200\\
\end{array}
\end{array}$ Calculate the amount of medical expenses that will be included with Jenna's other itemized deductions.

Accepted Answer

The answer of Jenna (age 50) files single and reports...

Question 16

Which of the following is a true statement?

Accepted Answer

A)  Traveling from a personal residence to a place of business is deducted for AGI as a moving expense. 
B)  Traveling from a personal residence to a place of business is a miscellaneous itemized deduction subject to the 2 percent of AGI limitation. 
C)  The standard mileage rate can be used to calculate the deduction for traveling from a personal residence to a place of business. 
D)  Traveling from a personal residence to a place of business is deductible if reimbursed by an employer. 
E)  Traveling from a personal residence to a place of business is nondeductible. 
A)  Traveling from a personal residence to a place of business is deducted for AGI as a moving expense. 
B)  Traveling from a personal residence to a place of business is a miscellaneous itemized deduction subject to the 2 percent of AGI limitation. 
C)  The standard mileage rate can be used to calculate the deduction for traveling from a personal residence to a place of business. 
D)  Traveling from a personal residence to a place of business is deductible if reimbursed by an employer. 
E)  Traveling from a personal residence to a place of business is nondeductible.

Question 17

Mason paid $4,100 of interest on a loan that paid tuition for him to attend a private university this year. How much of this payment can Mason deduct as interest expense on an educational loan if he files single and reports modified AGI of $90,000?

Accepted Answer

A)  $4,100 
B)  $4,000 
C)  $2,667 
D)  $2,000 
E)  None of these. 
A)  $4,100 
B)  $4,000 
C)  $2,667 
D)  $2,000 
E)  None of these.

Question 18

This year, Jong paid $3,000 of interest on a qualified education loan. Jong files married joint and reports modified AGI of $142,000. What is Jong's deduction for interest expense on an educational loan?

Accepted Answer

A)  $2,500 
B)  $3,000 
C)  $1,500 
D)  $1,000 
E)  None of these. 
A)  $2,500 
B)  $3,000 
C)  $1,500 
D)  $1,000 
E)  None of these.

Question 19

Taxpayers generally deduct the lesser of their standard deduction or their itemized deductions.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a true statement?

Accepted Answer

A)  Fees for investment advice are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation. 
B)  Unreimbursed employee business expenses are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation. 
C)  Fees for tax preparation are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation. 
D)  Reimbursed employee business expenses are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation unless the employer's reimbursement plan qualifies as an accountable plan. 
E)  All of these are true. 
A)  Fees for investment advice are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation. 
B)  Unreimbursed employee business expenses are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation. 
C)  Fees for tax preparation are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation. 
D)  Reimbursed employee business expenses are included in miscellaneous itemized deductions subject to the 2 percent of AGI limitation unless the employer's reimbursement plan qualifies as an accountable plan. 
E)  All of these are true.

Self employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self employment taxes paid.

Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2014?

This year Amanda paid $749 in Federal gift taxes on a gratuitous transfer to her nephew. Amanda lives in Texas and does not pay any state or local income taxes. Which of the following is a true statement?

Which of the following is a true statement?

All reasonable moving expenses are deductible if the move is a minimum of 35 miles in distance.

Which of the following itemized deductions is not subject to the itemized deduction phase-out?

Justin and Georgia file married jointly with one dependent. This year, their AGI is $319,050. What dollar amount of personal and dependency exemptions would they be allowed to deduct this year?

Taxpayers are allowed to deduct all ordinary and necessary expenses incurred in connection with determining their tax obligations imposed by federal authorities.

Which of the following is a true statement?

Mason paid $4,100 of interest on a loan that paid tuition for him to attend a private university this year. How much of this payment can Mason deduct as interest expense on an educational loan if he files single and reports modified AGI of $90,000?

This year, Jong paid $3,000 of interest on a qualified education loan. Jong files married joint and reports modified AGI of $142,000. What is Jong's deduction for interest expense on an educational loan?

Taxpayers generally deduct the lesser of their standard deduction or their itemized deductions.

Which of the following is a true statement?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

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Exam 6: Individual Deductions

Self employed taxpayers can choose between claiming a deduction or a credit for the employer portion of self employment taxes paid.

Frieda is 67 years old and deaf. If Frieda files as a head of household, what amount of standard deduction can she claim in 2014?

This year Amanda paid $749 in Federal gift taxes on a gratuitous transfer to her nephew. Amanda lives in Texas and does not pay any state or local income taxes. Which of the following is a true statement?

Which of the following is a true statement?

All reasonable moving expenses are deductible if the move is a minimum of 35 miles in distance.

Which of the following itemized deductions is not subject to the itemized deduction phase-out?

Justin and Georgia file married jointly with one dependent. This year, their AGI is $319,050. What dollar amount of personal and dependency exemptions would they be allowed to deduct this year?

Taxpayers are allowed to deduct all ordinary and necessary expenses incurred in connection with determining their tax obligations imposed by federal authorities.

Which of the following is a true statement?

Mason paid $4,100 of interest on a loan that paid tuition for him to attend a private university this year. How much of this payment can Mason deduct as interest expense on an educational loan if he files single and reports modified AGI of $90,000?

This year, Jong paid $3,000 of interest on a qualified education loan. Jong files married joint and reports modified AGI of $142,000. What is Jong's deduction for interest expense on an educational loan?

Taxpayers generally deduct the lesser of their standard deduction or their itemized deductions.

Which of the following is a true statement?

An Introduction to Tax

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Investments

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Filters