Which of the following expenses, if any, qualify as deductible?
A)Contributions to a Coverdell Education Savings Account (CESA).
B)Contributions to a qualified tuition program (§ 529 plan).
C)Job-hunting expense of FBI agent who applies for the job of city manager of Beaumont, TX.
D)Contribution to a traditional IRA.
E)None of these.

Question

Quizplus · Accepted Answer

Contributions to a traditional IRA are deductible, allowing taxpayers to reduce their taxable income by the amount contributed, subject to IRS limits and rules. Contributions to Coverdell ESAs and 529 plans are not deductible on federal income tax returns, though they may grow tax-free and be withdrawn tax-free for qualified education expenses. Job-hunting expenses are no longer deductible following changes in tax law effective from 2018.

Which of the Following Expenses, If Any, Qualify as Deductible