1.) _______________ is (are) fully deductible as an itemized deduction on Schedule A.

d) All qualified medical expenses

b) Credit card interest

c) IRA contributions

e) Answers a and d are both correct

a) Mortgage interest on a primary residence

2.)A UCF graduate under 65 years old has $110,000 of adjusted gross income and $12,500 of qualifying medical expenses. This individual's itemized deductions for medical expenses on Schedule A would be:

$7,500

$12,500

$500

$1,500

3.)

A taxpayer has $10,000 in charitable contributions and will be using Schedule A with no limitations. The taxpayer is in the 28% marginal tax bracket. The charitable contribution reduced taxable income and his/her taxes by:

Taxable income is $10,000 lower; taxes reduced by $2,800.

Taxable income is $2,800 lower; taxes reduced by $2,800.

Taxable income is $10,000 lower; taxes reduced by $1,500.

Taxable income is $10,000 lower; taxes reduced by $3,500.