1. Contributions by a self-employed individual to a SEP plan for 2018 are limited to the lesser of a percent of net earned income or. a. So b. $18,500 c. $55,000 d. $54,000 e. None of these choices are correct. 2. Which of the following is not an itemized deduction? a. Medical expenses b. IRA contribution deduction c. Personal property taxes d. Home mortgage interest e. All of these choices are itemized deductions 3. Steve goes to Tri-State University and pays $40,000 in tuition. Steve works to pay for his schooling and has an AGI of $37,000. How much is his American Opportunity tax credit? a. $4,000 b. $2,000 c. $1,000 d. $2,500 e. He does not qualify for the American Opportunity tax credit. Eugene and Velma are married. For 2018, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns. They have no deductions for adjusted gross income. Eugene's itemized deductions are $14,200 and Velma's are $4,000. Assuming Eugene and Velma do not live in a community property state and Eugene deducts the greater of the standard deduction or itemized deductions, what is Eugene's taxable income? a $10,800 b. $18,000 c $21,000 d $1,000 e None of these choices are correct