1. Justin, a teacher, spent a total of $500 on classroom supplies for his third-grade students. He asks his tax preparer if hes able to deduct any of these expenses. How much is he able to deduct, if any, and where does he report this amount on his tax return?

a) The money Justin has spent out-of-pocket is not deductible.

b) Justin can report all his expenses as an adjustment to income on Schedule 1 (Form 1040), line 23.

c) Justin can deduct $250 as an adjustment to income on Schedule 1 (Form 1040), line 23.

The remainder can be reported on Schedule A, line 21 as an unreimbursed employee expense.

d) Justin can report $250 as an adjustment to income on Schedule 1 (Form 1040), line 23 and the remaining $250 is not deductible

2. Diane, single, works for a company that does not have a retirement plan. Diane is considering making contributions to a Roth IRA. Which of the following is a condition for making contributions to a Roth IRA?

a) The taxpayer must have earned taxable income during the year and has not reached age

70 by the end of the year.

b) Her only source of earnings was from a pension, and she was under the age of 70 by the end of the year.

c) The taxpayer must have earned taxable income during the year and has not reached 59 by the end of the year.

d) The taxpayer must have earned taxable income during the year, and the modified AGI must be less than $135,000.

3. Jodie, age 52, filed as Married Filing Separately and lived with her husband during the year. Her modified AGI is $68,000. She is considering contributing funds to her Roth IRA. What amount is Jodie allowed to contribute to her Roth IRA for the tax year?

a) $3,000

b) $5,500

c) $ 0

d) $6,500

4. The Jenkins, a married couple who file Married Filing Jointly, want to set up Traditional IRA accounts. If neither are covered by a retirement plan at work, what is the limit of their modified AGI in order for the Jenkins to be able to contribute to a Traditional IRA?

a) Less than $121,000

b) Limits do not apply

c) Less than $199,000

d) Less than $63,000

us tax