Exam 4: Adjustments for Adjusted Gross Income

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

If a taxpayer withdraws his or her deposit on a CD before the instrument matures, the penalty for the early withdrawal on interest will be reported by the financial institution:

Under a court-ordered decree of separate maintenance executed in 2015, Rebecca is required to pay her ex-husband, Carl, $4,750 a month until their youngest son turns age 18. At that time, the required payments are reduced to $2,100 per month. How much of each payment is deductible by Rebecca as alimony for 2015?

What are the contribution amounts for both individual and family coverage to a Health Savings Account for a tax payer under 55 years of age for 2015?

For 2015, the maximum deductible and annual out-of-pocket expenses for family coverage on a high deductible health plan for a Health Savings Account is:

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

Books purchased for courses at the campus bookstore, independent of tuition charges, are eligible expenses for the tuition and fees deduction.

Which of the following items are considered alimony?

For a taxpayer to be eligible to deduct moving expenses, in addition to the employment test, he or she:

Unreimbursed qualifying moving expenses are an above-the-line deduction for 2015.

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

Is the self-employed health insurance deduction available to individuals other than self-employed taxpayers? If so, to whom is it available?

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

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.

To be eligible to fund a Health Savings Account (HSA), a taxpayer must be self-employed, or an employee (or spouse) of an employer who maintains a high deductible health plan, or an employee of a company that offers no health coverage and the employee has purchased a high deductible health plan on his or her own.

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.

Under the terms of a divorce agreement, Bev was to pay her husband Leon $4,000 per month in alimony and $1,500 per month in child support. For a twelve-month period, what is the amount that Bev can deduct from gross income and Leon must include in gross income?

For family coverage in 2015, the maximum deductible and out of pocket expense to a Health Savings Account is:

For 2015, the amount of the student loan interest deduction is limited to $3,500.

The student loan interest deduction may be limited based on the modified AGI of the taxpayer.