During the current year, Mary paid the following expenses:? \[\begin{array} { l l } \text { Prescription drugs } & \$ 490 \\ \text { Aspirin and over the counter cold capsules } & \$ 130 \\ \text { Hospital and doctors } & \$ 700 \\ \text { Life insurance } & \$ 260 \end{array}\] What is the total amount of medical expenses (before considering the limitation based on adjusted gross income)that would enter into the calculation of itemized deductions on Mary's current year income tax return?

A) $700 B) $1,190 C) $1,450 D) $1,580 E) None of the above A) $700 B) $1,190 C) $1,450 D) $1,580 E) None of the above

In 2018, David, age 65, had adjusted gross income of $32,000.During the year he paid the following medical expenses: \[\begin{array} { l r } \text { Prescription medicines } & \$ 200 \\ \text { Doctors } & \$ 2,500 \\ \text { Medical care insurance } & \$ 1,400 \\ \text { Over-the-counter hair growth tonic } & \$ 250 \end{array}\] What amount can David deduct as medical expenses (after the adjusted gross income limitation)in calculating his itemized deductions for 2018?

A) $0 B) $900 C) $1,700 D) $4,100 E) None of the above A) $0 B) $900 C) $1,700 D) $4,100 E) None of the above

Exam 5: Deductions and Adjustments to Income

Matthew purchases a new principal residence in the current year and pays points of $2,000 to obtain a mortgage loan.What is the proper tax treatment for the points paid?

(Multiple Choice)

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Question 21

Meade paid $5,000 of state income taxes in 2018.The total actual sales taxes paid during 2018 was $4,500, which did not include $3,000 for the sales taxes paid in 2018 on Meade's new boat.How should Meade treat the taxes paid in his 2018 tax return?

(Essay)

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Question 22

What is the maximum amount a 30-year-old taxpayer and a 35-year-old spouse can put into a Traditional or Roth IRA for 2018, assuming they earn $50,000 in total and are not covered by pension plans?

(Essay)

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Question 23

During the current year, Mary paid the following expenses:? Prescription drugs \ 490 Aspirin and over the counter cold capsules \ 130 Hospital and doctors \ 700 Life insurance \ 260 What is the total amount of medical expenses (before considering the limitation based on adjusted gross income)that would enter into the calculation of itemized deductions on Mary's current year income tax return?

(Multiple Choice)

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Question 24

Brett and Lisa file taxes under the married filing jointly status.Lisa is a sales manager for an auto parts company and Brett takes care of their 3 children.In 2018, Lisa receives a promotion associated with a move to a new division located over 500 miles from their existing home.The cost to move their household items is $8,700.Lisa's employer reimburses her for $3,000 of those costs and also pays $2,100 for airfare for the entire family to fly to the new destination.Lisa's moving expenses deduction for 2018 is:

(Multiple Choice)

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Question 25

Dr.Wheeler donates her time and services to Doctors with No Limits, a qualified charity.Dr.Wheeler can take a tax deduction for the $3,400 market value of her time donated.

(True/False)

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Question 26

Mike and Rose are married and file jointly.Mike earns $45,000 from wages and Rose reports $450 on her Schedule C as an artist.Since Mike's work does not offer health insurance, Rose pays the following health insurance premiums from her business account: Family heal th insurance \9 ,500 Family dental insurance 1,000 How much can Mike and Rose deduct as self-employed health insurance?

(Essay)

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Question 27

Margo has $2,200 withheld from her wages for state income taxes during 2018.In March of 2018, she paid $400 in additional taxes for her 2017 state tax return.Her state income tax liability for 2018 is $2,700 and she pays the additional $500 when she files her 2018 state tax return in April of 2019.What amount should Margo deduct as an itemized deduction for state income taxes on her 2018 federal income tax return, assuming she deducts state and local income taxes?

(Multiple Choice)

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Question 28

Donald, a 40-year-old married taxpayer, has a salary of $55,000 and interest income of $6,000.He is an active participant in his employer's pension plan.What is the maximum amount Donald can contribute to a Roth IRA in 2018?

(Multiple Choice)

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Question 29

Mortgage interest on a taxpayer's personal residence is not deductible on Schedule A.

(True/False)

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Question 30

Fran paid the following amounts of interest during 2018: Qualified home mortgage interest \ 7,000 Automobile loan interest \ 500 Qualified interest on second residence \ 5,000 Credit card interest \ 300 Calculate the amount of Fran's interest deduction for 2018.

(Short Answer)

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Question 31

Taxpayers are permitted an itemized deduction for the lesser of state income taxes paid or state sales taxes paid.

(True/False)

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Question 32

Which of the following is not deductible as interest expense on Schedule A?

(Multiple Choice)

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Question 33

Gail is a single elementary school teacher.She buys the following items for use in her classroom in 2018: Construction paper and tissues \4 5 Materials for decorating the classroom bulletin boards \2 00 Attist's smock used for in-class finger painting \3 0 12 Dozen erasers \1 5 What amount can Gail deduct either as a for or from AGI deduction in 2018?

(Multiple Choice)

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Question 34

A 42-year-old single taxpayer earning a salary of $136,000 a year can make which of the following IRA contributions if he is not covered by a plan at work?

(Multiple Choice)

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Question 35

Steven is 27 years old and has a total AGI of $110,000 in 2018.He contracts pneumonia in 2018 and incurs a medical bill that totals $7,500.He withdraws $7,500 from his traditional IRA to pay the bill.Which of the following is true?

(Multiple Choice)

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Question 36

For 2018, Betsy and Bob, ages 62 and 68, respectively, are married taxpayers who file a joint tax return with AGI of $50,000.During the year they incurred the following expenses: Medical insurance premiums \3 ,200 Hospital bills (knee replacement for Bob) \4 ,400 Hospital bills (face lift for Betsy) \2 ,600 Doctor bills \7 50 Dentist bills \2 50 Prescription eyeglasses \3 80 Acupuncture treatments (for Bob's knee pain prior to his operation) \3 00 In addition, their insurance company reimbursed them $3,100 for the above expenses.Using the format below, calculate Betsy and Bob's deduction for medical and dental expenses for 2018. $For 2018, Betsy and Bob, ages 62 and 68, respectively, are married taxpayers who file a joint tax return with AGI of $50,000.During the year they incurred the following expenses: \begin{array}{llcc} \text { Medical insurance premiums} & \$3,200\\ \text { Hospital bills (knee replacement for Bob) } &\$4,400\\ \text { Hospital bills (face lift for Betsy) } &\$2,600\\ \text {Doctor bills } &\$750\\ \text {Dentist bills } &\$250\\ \text {Prescription eyeglasses } &\$380\\ \text { Acupuncture treatments (for Bob's knee pain prior to his operation) }&\$300 \end{array} In addition, their insurance company reimbursed them $3,100 for the above expenses.Using the format below, calculate Betsy and Bob's deduction for medical and dental expenses for 2018.$

(Essay)

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Question 37

Which of the following types of interest is not deductible?

(Multiple Choice)

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Question 38

In 2018, David, age 65, had adjusted gross income of $32,000.During the year he paid the following medical expenses: Prescription medicines \ 200 Doctors \ 2,500 Medical care insurance \ 1,400 Over-the-counter hair growth tonic \ 250 What amount can David deduct as medical expenses (after the adjusted gross income limitation)in calculating his itemized deductions for 2018?

(Multiple Choice)

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Question 39

Which of the following is not considered a deductible medical expense?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 135

Matthew purchases a new principal residence in the current year and pays points of $2,000 to obtain a mortgage loan.What is the proper tax treatment for the points paid?

Meade paid $5,000 of state income taxes in 2018.The total actual sales taxes paid during 2018 was $4,500, which did not include $3,000 for the sales taxes paid in 2018 on Meade's new boat.How should Meade treat the taxes paid in his 2018 tax return?

What is the maximum amount a 30-year-old taxpayer and a 35-year-old spouse can put into a Traditional or Roth IRA for 2018, assuming they earn $50,000 in total and are not covered by pension plans?

Dr.Wheeler donates her time and services to Doctors with No Limits, a qualified charity.Dr.Wheeler can take a tax deduction for the $3,400 market value of her time donated.

Donald, a 40-year-old married taxpayer, has a salary of $55,000 and interest income of $6,000.He is an active participant in his employer's pension plan.What is the maximum amount Donald can contribute to a Roth IRA in 2018?

Mortgage interest on a taxpayer's personal residence is not deductible on Schedule A.

Fran paid the following amounts of interest during 2018: Qualified home mortgage interest \ 7,000 Automobile loan interest \ 500 Qualified interest on second residence \ 5,000 Credit card interest \ 300 Calculate the amount of Fran's interest deduction for 2018.

Taxpayers are permitted an itemized deduction for the lesser of state income taxes paid or state sales taxes paid.

Which of the following is not deductible as interest expense on Schedule A?

A 42-year-old single taxpayer earning a salary of $136,000 a year can make which of the following IRA contributions if he is not covered by a plan at work?

Steven is 27 years old and has a total AGI of $110,000 in 2018.He contracts pneumonia in 2018 and incurs a medical bill that totals $7,500.He withdraws $7,500 from his traditional IRA to pay the bill.Which of the following is true?

Which of the following types of interest is not deductible?

Which of the following is not considered a deductible medical expense?

The Individual Income Tax Return

Gross Income and Exclusions

Additional Income Part 1

Additional Income Part 2

Accounting Methods and Taxes

Tax Credits

Depreciation and Sale of Business Property

Payroll, Estimated Payments, and Retirement Plans

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

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