Exam 6: Individual Deductions

Hector is a married self-employed taxpayer, and this year he paid $3,000 for his health insurance premiums (not through an exchange). Under which of the following alternative conditions can Hector deduct the cost of the premiums for AGI?

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?

Which of the following is a true statement?

Which of the following taxes will not qualify as an itemized deduction?

Which of the following is a true statement?

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

Taxpayers traveling for the primary purpose of receiving essential and deductible medical care may deduct the cost of travel.

Han is a self-employed carpenter and his wife, Christine, works full-time as a grade school teacher. Han paid $525 for carpentry tools and supplies, and Christine paid $3,600 as her share of health insurance premiums for Han and herself in a qualified plan provided by the school district (not through an exchange). Which of the following is a true statement?

Erika (age 67) was hospitalized with injuries from an auto accident this year. She incurred the following expenses from the accident: Hospital charges \3 ,280 Prescription medicine 510 Doctor's fees 1,240 In addition, Erika's auto was completely destroyed in the accident. She bought the car several years ago for $18,000 and it was worth $4,700 at the time of the accident. What are Erika's itemized deductions this year if she was uninsured and her AGI is $40,000?

Max paid $5,000 of tuition for him to attend a private university this year. How much of this payment can Mason deduct as a qualifying education expense if he files single and reports modified AGI of $60,000 (assume the 2013 rules apply for purposes of the qualified education expense deduction)?

Which of the following is a true statement?

Larry recorded the following donations this year: $500 cash to a family in need $2,400 to a church $500 cash to a political campaign To the Salvation Army household items that originally cost $1,200 but are worth $300. What is Larry's maximum allowable charitable contribution if his AGI is $60,000?

Scott is a self-employed plumber and his wife, Emily, is a full-time employee for the University. Emily has health insurance from a qualified plan provided by the University, but Scott has chosen to purchase his own health insurance rather than participate in Emily's plan. Besides paying $5,400 for his health insurance premiums, Scott also pays the following expenses associated with his plumbing business: Plumbing tools and supplies \1 ,300 Rent on Scott's plumbing shop 6,250 Transportation between Scott's shop and various job sites 500 Plumber's uniform 50 Plumbing truck rental 7,200 Self employment tax ( 1 / 2 is employer share) 400 What is the amount of deductions for AGI that Scott can claim this year (2013)?

Rental or royalty expenses are deductible "for" AGI.