Fundamentals of Taxation

Business

Quiz 4 :
Adjustments for Adjusted Gross Income

Quiz 4 :
Adjustments for Adjusted Gross Income

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Tuition,fees,books,supplies,room,board,and other necessary expenses of attendance are qualified education expenses for purposes of the student loan interest deduction.
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True False
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Answer:

True

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

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

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For the interest on a student loan to qualify for the student loan interest deduction,the student must be enrolled full-time.
True False
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A Health Savings Account HSA)is a tax-exempt savings account to be used for qualified medical expenses.
True False
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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.
True False
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Distributions from Health Savings Accounts HSAs)are subject to tax,if they are used to pay for qualified medical expenses.
True False
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For 2016,unreimbursed qualifying moving expenses are an itemized deduction.
True False
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Deductible moving expenses may include moving household goods and personal effects from the old residence to the new residence.
True False
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There is an employment test,a distance test,and a time test that must be met in order to deduct qualifying moving expenses.
True False
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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.
True False
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Self-employment tax is calculated on the gross earnings of the business.
True False
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Self-employed persons are allowed a for AGI deduction equal to one-half of the self-employment tax imposed.
True False
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Qualified self-employed taxpayers can deduct,as a for AGI deduction,80% of health insurance payments for 2016.
True False
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The self-employed health insurance deduction is also available to a partner in a partnership and to a shareholder in a Subchapter S corporation who owns more than 2% of the stock in the corporation.
True False
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If a taxpayer incurs an early withdrawal of savings penalty,the taxpayer is entitled to report the penalty as a for AGI deduction on Form 1040.
True False
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The payment of alimony has tax ramifications.These tax ramifications only affect the payor of the alimony.
True False
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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.
True False
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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.
True False
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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.
True False
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