Question 1

For 2016,the maximum amount of deductible student loan interest is $2,500.

Accepted Answer

A) True 
 B)False

Question 2

Charde,who is single,had a student loan for qualified education expenses on which interest was due.For 2016,the total interest payments were $2,000.Assuming she has AGI under $65,000,how much may she deduct in arriving at adjusted gross income for 2016?

Accepted Answer

A) $2,000. 
B) $2,500. 
C) $1,700. 
D) $0. 
A) $2,000. 
B) $2,500. 
C) $1,700. 
D) $0.

Question 3

Student loan interest is deductible only by the person who actually attended the educational institution.

Accepted Answer

A) True 
 B)False

Question 4

For the deduction of self-employment taxes,which of the following statements is correct?

Accepted Answer

A) They are 80% deductible as a for AGI deduction. 
B) They are not deductible. 
C) They are taken as an itemized deduction on Schedule A. 
D) They are 50% deductible as a for AGI deduction. 
A) They are 80% deductible as a for AGI deduction. 
B) They are not deductible. 
C) They are taken as an itemized deduction on Schedule A. 
D) They are 50% deductible as a for AGI deduction.

Question 5

For a taxpayer to be eligible to fund a Health Savings Account HSA),he or she must be:

Accepted Answer

A) An employee of a company that offers no health coverage and the employee has purchased a high deductible health plan on their own. 
B) A self-employed individual. 
C) An employee or spouse)who works for an employer with a high deductible health plan. 
D) All of these. 
A) An employee of a company that offers no health coverage and the employee has purchased a high deductible health plan on their own. 
B) A self-employed individual. 
C) An employee or spouse)who works for an employer with a high deductible health plan. 
D) All of these.

Question 6

Due to a company consolidation,Renaldo transfers from Boston to San Diego.Under a new job description,he is reclassified from department manager to a staff member.His moving expenses,which are not reimbursed,are as follows:   Renaldo's deductible moving expense is:

Accepted Answer

A) $8,400. 
B) $5,600. 
C) $1,900. 
D) $4,400. 
A) $8,400. 
B) $5,600. 
C) $1,900. 
D) $4,400.

Question 7

The payment of alimony has tax ramifications.These tax ramifications only affect the payor of the alimony.

Accepted Answer

A) True 
 B)False

Question 8

Under a divorce agreement executed in 2016,periodic payments of either cash or property must be made at regular intervals to be deductible as alimony.

Accepted Answer

A) True 
 B)False

Question 9

Madison is a teacher at a parochial elementary school.If she spends $600 on art supplies for her classes,$250 of this amount can be claimed as a deduction for AGI.

Accepted Answer

A) True 
 B)False

Question 10

In 2012 through 2015,Samantha borrowed a total of $30,000 for higher education expenses on qualified education loans.In 2016,while still living at home and being claimed by her parents as a dependent,she began making payments on the loan.The first year interest on the loan was reported as $1,750.The amount that Samantha can claim on her tax return is:

Accepted Answer

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

Question 11

The early withdrawal penalty is deductible as an:

Accepted Answer

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

Question 12

For family coverage in 2016,the maximum deductible and out of pocket expense to a Health Savings Account is:

Accepted Answer

A) $13,100. 
B) $2,600. 
C) $12,900. 
D) None of these. 
A) $13,100. 
B) $2,600. 
C) $12,900. 
D) None of these.

Question 13

Why is it important to distinguish between a property settlement and alimony?

Accepted Answer

A property settlement does not result in

Question 14

A Health Savings Account HSA)is a tax-exempt savings account to be used for qualified medical expenses.

Accepted Answer

A) True 
 B)False

Question 15

Henry graduated from the University of Maryland in 2014.In 2016,to take advantage of lower interest rates,he refinanced his qualified education loans with another qualified student loan.He is not a dependent on another person's tax return.Before AGI limits,what is the maximum deduction available to him for the $3,200 he paid for educational student loan interest in 2016?

Accepted Answer

A) $2,000. 
B) $3,000. 
C) $0. 
D) $2,500. 
A) $2,000. 
B) $3,000. 
C) $0. 
D) $2,500.

Question 16

Qualification under the 900-hour working test for the educator's expense deduction is measured by:

Accepted Answer

A) 3 consecutive months. 
B) 5 consecutive months. 
C) The calendar year. 
D) The academic year. 
A) 3 consecutive months. 
B) 5 consecutive months. 
C) The calendar year. 
D) The academic year.

Question 17

Unreimbursed qualifying moving expenses are an above-the-line deduction for 2016.

Accepted Answer

A) True 
 B)False

Question 18

The maximum amount of the deduction for student loan interest for an eligible taxpayer is limited in the 2016 tax year to:

Accepted Answer

A) $2,500. 
B) $2,350. 
C) $2,000. 
D) $1,500. 
A) $2,500. 
B) $2,350. 
C) $2,000. 
D) $1,500.

Question 19

The deduction for self-employment taxes in 2016 is deductible as an above-the-line deduction at a rate of 7.65% based on the employer's portion of the taxes.

Accepted Answer

A) True 
 B)False

Question 20

In 2012 through 2016,Shannon borrowed a total of $35,000 for higher education expenses on qualified education loans while supporting herself with a full-time job.In 2016,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) $850. 
C) $425. 
D) $640. 
A) $0. 
B) $850. 
C) $425. 
D) $640.

For 2016,the maximum amount of deductible student loan interest is $2,500.

Charde,who is single,had a student loan for qualified education expenses on which interest was due.For 2016,the total interest payments were $2,000.Assuming she has AGI under $65,000,how much may she deduct in arriving at adjusted gross income for 2016?

Student loan interest is deductible only by the person who actually attended the educational institution.

For the deduction of self-employment taxes,which of the following statements is correct?

For a taxpayer to be eligible to fund a Health Savings Account HSA),he or she must be:

Due to a company consolidation,Renaldo transfers from Boston to San Diego.Under a new job description,he is reclassified from department manager to a staff member.His moving expenses,which are not reimbursed,are as follows: Renaldo's deductible moving expense is:

The payment of alimony has tax ramifications.These tax ramifications only affect the payor of the alimony.

Under a divorce agreement executed in 2016,periodic payments of either cash or property must be made at regular intervals to be deductible as alimony.

Madison is a teacher at a parochial elementary school.If she spends $600 on art supplies for her classes,$250 of this amount can be claimed as a deduction for AGI.

The early withdrawal penalty is deductible as an:

For family coverage in 2016,the maximum deductible and out of pocket expense to a Health Savings Account is:

Why is it important to distinguish between a property settlement and alimony?

A Health Savings Account HSA)is a tax-exempt savings account to be used for qualified medical expenses.

Qualification under the 900-hour working test for the educator's expense deduction is measured by:

Unreimbursed qualifying moving expenses are an above-the-line deduction for 2016.

The maximum amount of the deduction for student loan interest for an eligible taxpayer is limited in the 2016 tax year to:

The deduction for self-employment taxes in 2016 is deductible as an above-the-line deduction at a rate of 7.65% based on the employer's portion of the taxes.

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

For 2016,the maximum amount of deductible student loan interest is $2,500.

Charde,who is single,had a student loan for qualified education expenses on which interest was due.For 2016,the total interest payments were $2,000.Assuming she has AGI under $65,000,how much may she deduct in arriving at adjusted gross income for 2016?

Student loan interest is deductible only by the person who actually attended the educational institution.

For the deduction of self-employment taxes,which of the following statements is correct?

For a taxpayer to be eligible to fund a Health Savings Account HSA),he or she must be:

Due to a company consolidation,Renaldo transfers from Boston to San Diego.Under a new job description,he is reclassified from department manager to a staff member.His moving expenses,which are not reimbursed,are as follows: Renaldo's deductible moving expense is:

The payment of alimony has tax ramifications.These tax ramifications only affect the payor of the alimony.

Under a divorce agreement executed in 2016,periodic payments of either cash or property must be made at regular intervals to be deductible as alimony.

Madison is a teacher at a parochial elementary school.If she spends $600 on art supplies for her classes,$250 of this amount can be claimed as a deduction for AGI.

The early withdrawal penalty is deductible as an:

For family coverage in 2016,the maximum deductible and out of pocket expense to a Health Savings Account is:

Why is it important to distinguish between a property settlement and alimony?

A Health Savings Account HSA)is a tax-exempt savings account to be used for qualified medical expenses.

Qualification under the 900-hour working test for the educator's expense deduction is measured by:

Unreimbursed qualifying moving expenses are an above-the-line deduction for 2016.

The maximum amount of the deduction for student loan interest for an eligible taxpayer is limited in the 2016 tax year to:

The deduction for self-employment taxes in 2016 is deductible as an above-the-line deduction at a rate of 7.65% based on the employer's portion of the taxes.

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