Exam 5: Itemized Deductions and Other Incentives

Lourdes is a paralegal.Since she often deals with legal matters,she feels a law degree would be beneficial to her.May Lourdes deduct her educational expenses for law school as a miscellaneous itemized deduction? Explain.

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(Essay)

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Question 1

Correct Answer:

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No.The cost of educational expenses for law school would not be deductible as a miscellaneous itemized deduction since the education would prepare the taxpayer for a new career.The cost may qualify for the deduction for higher education expenses or for the Lifetime Learning credit discussed in later chapters.

If a taxpayer installs special equipment in their home for medical reasons,some or all of the cost can be included as a deductible medical expense.

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(True/False)

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Question 2

Correct Answer:

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True

The cost of uniforms is deductible only by self-employed taxpayers.

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(True/False)

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Question 3

Correct Answer:

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False

If a ballet dancer seeks work as a ditch digger,the expenses of job hunting may be deductible.

(True/False)

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Question 4

Premiums paid for life insurance policies are deductible as medical expenses.

(True/False)

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Question 5

Which of the following is a miscellaneous itemized deduction?

(Multiple Choice)

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Question 6

The adjusted gross income (AGI)limitation on medical expenses is 15 percent.

(True/False)

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Question 7

Stan,a single taxpayer,has $1,700 of state income taxes withheld from his wages in the current year.In the current year,he also received a $320 refund on his prior year state income tax.Stan did not itemize last year but he intends to do so this year.Stan used the sales tax estimate tables and determined his sales tax deduction amount is $1,600.What amount should Stan deduct for state taxes?

(Multiple Choice)

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Question 8

Which of the following miscellaneous deductions are not subject to the 2 percent of adjusted gross income limitation?

(Multiple Choice)

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Question 9

If the taxpayer fails to locate a job,job hunting expenses are not deductible.

(True/False)

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Question 10

Itemized deductions are subject to a phase-out based on AGI for certain high-income taxpayers.

(True/False)

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Question 11

If business property is fully destroyed as a result of a casualty,the loss is equal to the decrease in the fair market value of the property.

(True/False)

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Question 12

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

(Multiple Choice)

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Question 13

Jerry and Ann paid the following amounts during the current year: What is the maximum amount they can use as interest expense in calculating itemized deductions for the current year?

(Multiple Choice)

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Question 14

During the current tax year,Ruth,a nurse at Dr.Pan's office,incurred the following expenses: If Ruth's adjusted gross income is $29,000,calculate her net miscellaneous deductions after the adjusted gross income percentage limitation.

(Essay)

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Question 15

Carla is a high school teacher who is required by her school district to take continuing education courses which are offered at the local college.She is also in the process of taking classes at a different university where she is pursuing her Ph.D.to become a research specialist.She pays the tuition for both schools.Which of the following is true?

(Multiple Choice)

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Question 16

Melissa took a $1,500 distribution from her educational savings account and used $1,200 to pay for qualified education expenses.Before the distribution,Melissa's account balance was $4,000,of which $1,000 was earnings.Calculate the following:

(Essay)

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Question 17

In 2017,David,age 65,had adjusted gross income of $32,000.During the year he paid the following medical expenses: What amount can David deduct as medical expenses (after the adjusted gross income limitation)in calculating his itemized deductions for 2017?

(Multiple Choice)

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Question 18

Educational expenses are deductible as a miscellaneous itemized deduction even if the education is required to meet the minimum requirements for the taxpayer's current job.

(True/False)

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Question 19

The cost of over-the-counter aspirin and decongestants is a deductible medical expense even though they are non-prescription drugs.

(True/False)

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Question 20

Showing 1 - 20 of 142

Lourdes is a paralegal.Since she often deals with legal matters,she feels a law degree would be beneficial to her.May Lourdes deduct her educational expenses for law school as a miscellaneous itemized deduction? Explain.

If a taxpayer installs special equipment in their home for medical reasons,some or all of the cost can be included as a deductible medical expense.

The cost of uniforms is deductible only by self-employed taxpayers.

If a ballet dancer seeks work as a ditch digger,the expenses of job hunting may be deductible.

Premiums paid for life insurance policies are deductible as medical expenses.

Which of the following is a miscellaneous itemized deduction?

The adjusted gross income (AGI)limitation on medical expenses is 15 percent.

Which of the following miscellaneous deductions are not subject to the 2 percent of adjusted gross income limitation?

If the taxpayer fails to locate a job,job hunting expenses are not deductible.

Itemized deductions are subject to a phase-out based on AGI for certain high-income taxpayers.

If business property is fully destroyed as a result of a casualty,the loss is equal to the decrease in the fair market value of the property.

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

Jerry and Ann paid the following amounts during the current year: What is the maximum amount they can use as interest expense in calculating itemized deductions for the current year?

During the current tax year,Ruth,a nurse at Dr.Pan's office,incurred the following expenses: If Ruth's adjusted gross income is $29,000,calculate her net miscellaneous deductions after the adjusted gross income percentage limitation.

Melissa took a $1,500 distribution from her educational savings account and used $1,200 to pay for qualified education expenses.Before the distribution,Melissa's account balance was $4,000,of which $1,000 was earnings.Calculate the following:

In 2017,David,age 65,had adjusted gross income of $32,000.During the year he paid the following medical expenses: What amount can David deduct as medical expenses (after the adjusted gross income limitation)in calculating his itemized deductions for 2017?

Educational expenses are deductible as a miscellaneous itemized deduction even if the education is required to meet the minimum requirements for the taxpayer's current job.

The cost of over-the-counter aspirin and decongestants is a deductible medical expense even though they are non-prescription drugs.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses Part I

Business Income and Expenses Part II

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

Exam 5: Itemized Deductions and Other Incentives

Lourdes is a paralegal.Since she often deals with legal matters,she feels a law degree would be beneficial to her.May Lourdes deduct her educational expenses for law school as a miscellaneous itemized deduction? Explain.

If a taxpayer installs special equipment in their home for medical reasons,some or all of the cost can be included as a deductible medical expense.​

The cost of uniforms is deductible only by self-employed taxpayers.

If a ballet dancer seeks work as a ditch digger,the expenses of job hunting may be deductible.

Premiums paid for life insurance policies are deductible as medical expenses.

Which of the following is a miscellaneous itemized deduction?

The adjusted gross income (AGI)limitation on medical expenses is 15 percent.

Which of the following miscellaneous deductions are not subject to the 2 percent of adjusted gross income limitation?

If the taxpayer fails to locate a job,job hunting expenses are not deductible.

Itemized deductions are subject to a phase-out based on AGI for certain high-income taxpayers.

If business property is fully destroyed as a result of a casualty,the loss is equal to the decrease in the fair market value of the property.

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

Jerry and Ann paid the following amounts during the current year: What is the maximum amount they can use as interest expense in calculating itemized deductions for the current year?

During the current tax year,Ruth,a nurse at Dr.Pan's office,incurred the following expenses: If Ruth's adjusted gross income is $29,000,calculate her net miscellaneous deductions after the adjusted gross income percentage limitation.

Melissa took a $1,500 distribution from her educational savings account and used $1,200 to pay for qualified education expenses.Before the distribution,Melissa's account balance was $4,000,of which $1,000 was earnings.Calculate the following:

In 2017,David,age 65,had adjusted gross income of $32,000.During the year he paid the following medical expenses: ​ What amount can David deduct as medical expenses (after the adjusted gross income limitation)in calculating his itemized deductions for 2017?

Educational expenses are deductible as a miscellaneous itemized deduction even if the education is required to meet the minimum requirements for the taxpayer's current job.

The cost of over-the-counter aspirin and decongestants is a deductible medical expense even though they are non-prescription drugs.

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses Part I

Business Income and Expenses Part II

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding Estimated Payments and Payroll Taxes

Partnership Taxation

The Corporate Income Tax

Tax Administration and Tax Planning

Filters

If a taxpayer installs special equipment in their home for medical reasons,some or all of the cost can be included as a deductible medical expense.

In 2017,David,age 65,had adjusted gross income of $32,000.During the year he paid the following medical expenses: What amount can David deduct as medical expenses (after the adjusted gross income limitation)in calculating his itemized deductions for 2017?