Question 1

The qualified tuition and fees deduction is $4,000 for all eligible taxpayers.

Accepted Answer

A) True 
 B)False

Question 2

Peter,having moved from Oregon to Florida in the current year,met all the requirements to deduct moving expenses.Which of the following expenses that he incurred is not deductible as qualified moving expenses?

Accepted Answer

A) Shipping costs for his classic Corvette. 
B) Temporary storage costs incurred while his furniture was in transit from Oregon to Florida. 
C) The cost of an oil change incurred in driving his other car from Oregon to Florida. 
D) Home improvements to sell his home in Oregon. 
A) Shipping costs for his classic Corvette. 
B) Temporary storage costs incurred while his furniture was in transit from Oregon to Florida. 
C) The cost of an oil change incurred in driving his other car from Oregon to Florida. 
D) Home improvements to sell his home in Oregon.

Question 3

The cost of self-employed health insurance premiums is deductible above the line at a rate of 80% of the cost.

Accepted Answer

A) True 
 B)False

Question 4

Qualifying moving expenses are treated as an itemized deduction for 2016.

Accepted Answer

A) True 
 B)False

Question 5

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 6

For 2016,the amount of the student loan interest deduction is limited to $3,500.

Accepted Answer

A) True 
 B)False

Question 7

For the moving expense distance test,the new job location must be at least 100 miles farther from the taxpayer's old residence than was the old job location.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following expenses does not qualify as a moving expense?

Accepted Answer

A) Transportation of household goods. 
B) House hunting expenses. 
C) Travel expenses. 
D) Lodging. 
A) Transportation of household goods. 
B) House hunting expenses. 
C) Travel expenses. 
D) Lodging.

Question 9

What percentage of medical insurance premium payments could be deductible by self-employed taxpayers as a deduction for adjusted gross income on their 2016 tax returns?

Accepted Answer

A) 0%. 
B) 50%. 
C) 100%. 
D) 75%. 
A) 0%. 
B) 50%. 
C) 100%. 
D) 75%.

Question 10

What is the amount of self-employment tax that self-employed individuals must pay and what is the proper treatment on their tax return?

Accepted Answer

Self-employed individuals normally pay s

Question 11

Which of the following items are considered alimony?

Accepted Answer

A) Payments made on a piece of property transferred to the ex-spouse under the settlement agreement. 
B) Noncash property settlement. 
C) Payments made to a third party on behalf of the former spouse for the former spouse's dental expenses. 
D) Payments made for a six month period after the death of the recipient spouse. 
A) Payments made on a piece of property transferred to the ex-spouse under the settlement agreement. 
B) Noncash property settlement. 
C) Payments made to a third party on behalf of the former spouse for the former spouse's dental expenses. 
D) Payments made for a six month period after the death of the recipient spouse.

Question 12

In 2015,Carlos,who is single,received his Bachelor's degree and started working.In 2016,he began paying interest on qualified education loans and had modified AGI of $70,000.He paid interest of $1,200 in 2016.Which of the following statements is correct?

Accepted Answer

A) Due to the phase-out rules,only a portion of the $1,200 will be deductible. 
B) Taxpayers are not allowed a deduction for education loan interest in 2016. 
C) The full $1,200 is deductible in arriving at adjusted gross income. 
D) If his modified AGI had been $75,000,the phase-out rules would have reduced his deductible interest to zero. 
A) Due to the phase-out rules,only a portion of the $1,200 will be deductible. 
B) Taxpayers are not allowed a deduction for education loan interest in 2016. 
C) The full $1,200 is deductible in arriving at adjusted gross income. 
D) If his modified AGI had been $75,000,the phase-out rules would have reduced his deductible interest to zero.

Question 13

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

Accepted Answer

A) a total of 7.65% of the employer's share of FICA taxes. 
B) filing status. 
C) a total of 15.3% of FICA taxes. 
D) the gross earnings of the business. 
A) a total of 7.65% of the employer's share of FICA taxes. 
B) filing status. 
C) a total of 15.3% of FICA taxes. 
D) the gross earnings of the business.

Question 14

Which of the following types of income is subject to the self-employment tax?

Accepted Answer

A) Gain on the sale of a home. 
B) W-2 income. 
C) Income from a sole proprietor's coffee shop. 
D) Interest earned on a bank account. 
A) Gain on the sale of a home. 
B) W-2 income. 
C) Income from a sole proprietor's coffee shop. 
D) Interest earned on a bank account.

Question 15

If a divorce agreement executed in 2016 specifies that a portion of the amount of an alimony payment is contingent upon the age or status of a child,that portion is considered to be a child support payment.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Maria files her tax return married filing separately.She has not lived with her husband for over two years.Beginning in January 2016,by court ordered decree,she is to pay her husband $600 per month as separate maintenance.For 2016 how much will she be able to deduct as alimony?

Accepted Answer

A) $3,600. 
B) $0. 
C) $600. 
D) $7,200. 
A) $3,600. 
B) $0. 
C) $600. 
D) $7,200.

Question 18

For 2016,unreimbursed qualifying moving expenses are an itemized deduction.

Accepted Answer

A) True 
 B)False

Question 19

Qualified self-employed taxpayers can deduct,as a for AGI deduction,80% of health insurance payments for 2016.

Accepted Answer

A) True 
 B)False

Question 20

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.

Accepted Answer

A) True 
 B)False

The qualified tuition and fees deduction is $4,000 for all eligible taxpayers.

Peter,having moved from Oregon to Florida in the current year,met all the requirements to deduct moving expenses.Which of the following expenses that he incurred is not deductible as qualified moving expenses?

The cost of self-employed health insurance premiums is deductible above the line at a rate of 80% of the cost.

Qualifying moving expenses are treated as an itemized deduction for 2016.

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 2016,the amount of the student loan interest deduction is limited to $3,500.

For the moving expense distance test,the new job location must be at least 100 miles farther from the taxpayer's old residence than was the old job location.

Which of the following expenses does not qualify as a moving expense?

What percentage of medical insurance premium payments could be deductible by self-employed taxpayers as a deduction for adjusted gross income on their 2016 tax returns?

What is the amount of self-employment tax that self-employed individuals must pay and what is the proper treatment on their tax return?

Which of the following items are considered alimony?

In 2015,Carlos,who is single,received his Bachelor's degree and started working.In 2016,he began paying interest on qualified education loans and had modified AGI of $70,000.He paid interest of $1,200 in 2016.Which of the following statements is correct?

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

Which of the following types of income is subject to the self-employment tax?

If a divorce agreement executed in 2016 specifies that a portion of the amount of an alimony payment is contingent upon the age or status of a child,that portion is considered to be a child support payment.

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

Maria files her tax return married filing separately.She has not lived with her husband for over two years.Beginning in January 2016,by court ordered decree,she is to pay her husband $600 per month as separate maintenance.For 2016 how much will she be able to deduct as alimony?

For 2016,unreimbursed qualifying moving expenses are an itemized deduction.

Qualified self-employed taxpayers can deduct,as a for AGI deduction,80% of health insurance payments for 2016.

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.

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 Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

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 qualified tuition and fees deduction is $4,000 for all eligible taxpayers.

Peter,having moved from Oregon to Florida in the current year,met all the requirements to deduct moving expenses.Which of the following expenses that he incurred is not deductible as qualified moving expenses?

The cost of self-employed health insurance premiums is deductible above the line at a rate of 80% of the cost.

Qualifying moving expenses are treated as an itemized deduction for 2016.

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 2016,the amount of the student loan interest deduction is limited to $3,500.

For the moving expense distance test,the new job location must be at least 100 miles farther from the taxpayer's old residence than was the old job location.

Which of the following expenses does not qualify as a moving expense?

What percentage of medical insurance premium payments could be deductible by self-employed taxpayers as a deduction for adjusted gross income on their 2016 tax returns?

What is the amount of self-employment tax that self-employed individuals must pay and what is the proper treatment on their tax return?

Which of the following items are considered alimony?

In 2015,Carlos,who is single,received his Bachelor's degree and started working.In 2016,he began paying interest on qualified education loans and had modified AGI of $70,000.He paid interest of $1,200 in 2016.Which of the following statements is correct?

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

Which of the following types of income is subject to the self-employment tax?

If a divorce agreement executed in 2016 specifies that a portion of the amount of an alimony payment is contingent upon the age or status of a child,that portion is considered to be a child support payment.

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

Maria files her tax return married filing separately.She has not lived with her husband for over two years.Beginning in January 2016,by court ordered decree,she is to pay her husband $600 per month as separate maintenance.For 2016 how much will she be able to deduct as alimony?

For 2016,unreimbursed qualifying moving expenses are an itemized deduction.

Qualified self-employed taxpayers can deduct,as a for AGI deduction,80% of health insurance payments for 2016.

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.

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 Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

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