Taxation and Deductions: Education Expenses, Health Insurance Premiums, and More

Question 1: Deduction for Interest Expense on an Educational Loan

Task:

1)This year. Jong paid $3000 of interest on a qualified education loan. Jong files married filing jointly and reports modified AGI of $152,000. What is Jong’s deduction for interest expense on an educational loan?

a)$2500 (b)$3000 (c)$1500(d)$1000(e)none of the choice are correct.

2)Han is a self-employed carpenter and his wife. Christine. Works full time as grade school teacher ham paid $525 for carpentry tool and supplies, and Christine paid $3600 as her share of health insurance premiums (not with pretax dollars)for Han and herself in a qualified plan provided by the school district(not through an exchange)which of the following is a true statement?

a) The tools and supplies are deductible for AGI while the health insurance is an itemized deduction
b) Both expenditures are deductible for AGI
C) The tools and supplies are an itemized deduction but the health insurance is deductible for AGI
d) Both expenditures are itemized deduction
e) Neither of the expenditures is deductible.

3)This fall millie finally repaid her student loan . She originally borrowed the money to pay tuition several years ago, when she attended state university (a qualified educational institution) this year Millie paid a total of $2400 of interest on the loan. If Millie fillies single and reports $75000 of income and no other items of income or expenses. How much of interest can she deduct?

a)Miller can deduct $2400 for AGI
b)Miller can deduct $1600 for AGI
c)Miller can deduct $2400 as an itemized deduction
d)Millie can deduct $800 for AGI
e)None –the tuition is not deduction

4)Brice is a single. Self employed electrician who earns $60,000 per year in self-employment income. Brice paid the following expenses this year. Which of the expenses are deductible for AGI?

1.The cost of health insurance (not purchased through an exchange)
2.The employer portion of self employment tax paid
3.Penalty on early withdrawal of fund from a certificate of deposit
a)Numbers 1 and 2 only
b)Numbers 1 and 3 only
c)Numbers 2and 3 only
d)None of the choice is deductible for AGI
e) All of these choices are deductible for AGI
5)Which of the following is a true statement?

Multiple Choice

a)The deduction of cash contributions to public charities is limited to 30 percent of AGI
b) The deduction of capital gain property to private nonoperating foundations is limited to 50 percent of AGI
c) The deduction of capital gain property to public charities is limited to 20 percent of AGI
d)The deduction of cash contributions to private nonoperating foundation is limited to 30 percent of AGI
e) None of the choices are true

6)Which of the following is  a true statement?

Multiple choice

a)A taxpayer can deduct medical expenses incurred for members of his family who are dependents
b)A taxpayer can deduct medical expenses incurred for a qualified relative even if the relative does not meet the gross income test
c)A divorced taxpayer can deduct medical expenses incurred for a child even if the child is claimed as a dependent by the former spouse
d)Deduction medical expenses include long term care services for disable spouses and dependents
e) All of these choices are true

7)Andres and Lakeisha are married and file jointly, Andres is 72 years old and in good health. Lakeisha is 62 years old and blind. What amount of standard deduction can Andres and Lakeisha claim in 2019?

Multiple choice

a)27,000
b)27,700
c)25,850
d)25,700
e) none of the choices are correct

8)Which of the following is a true statement?

Multiple choice
a)For purposes of the deduction for educational interest. expenses do not include expenses for room, board and travel
b)For purpose of the deduction for educational interest, qualified education expenses are those paid for the education of the taxpayer, the taxpayer’s spouse, or the taxpayers dependent
c)The maximum deduction for interest expense on qualified education loan is $6,000
d)A penalty paid for prematurely withdrawing a certificate of deposit or similar deposit is deductable from AGI as an investment expense
e)All of these choices are false

9)Hector is a married, self employed taxpayer, and this year he paid $3,000 for his health insurance premium (not through an exchange) under which of the following alternative condition can hector deduct the cost of the premium for AGI?
MULTIPLE CHOICE
a)Hector chose not to participate in the employer sponsored plan of his spouse
b)Hectors spouse participates in an employer-sponsored plan but hector is not eligible to participate in the plan
c)Neither hector nor his spouse participates in an employer s sponsored plan although both are eligible to participate in a plan.
d)Hector can deduct the health insurance premiums regardless of the insurance status of his spouse
e)None of the choices health insurance premiums can only be deducted as an itemized deduction

10)Max, a single taxpayer, has a $270,000 loss from his sole proprietorship. How much of this loss is deductible after considering the excess business loss rules?

  a) $270,000 (b) $255,000(c)$15,0000(d)$0 (e)none of the choice are correct.