1. Monica has a Roth IRA to which she contributed $15,000. The IRA has a current value of $37,500. She is 54 years old and takes a distribution of $20,000. How much of the distribution will be taxable to Monica?

a.	$0
b.	$10,000
c.	$5,000
d.	$25,000
e.	$37,500

2. Jody is a physician (not covered by a retirement plan) with a salary of $40,000 from the hospital where she is employed. She supports her husband, Andre, who sells art work and has no earned income. Both are in their 50s. What is the maximum total amount that Jody and Andre may contribute to their traditional IRAs and deduct for the 2015 tax year?

a.	$5,500
b.	$13,000
c.	$11,000
d.	$10,000
e.	None of the above

3. Ursula, an employee of Ficus Corporation, is 35 years old and plans to retire in 20 years. The corporation has a qualified retirement plan and contributes $2,000 during 2015 for Ursula. How should Ursula treat the $2,000 contribution made on her behalf by the corporation?

a.	The $2,000 and any earnings thereon must be included in Ursula's 2015 gross income.
b.	Only the earnings on the $2,000 contribution must be included in Ursula's 2015 gross income.
c.	Ursula is not required to include either the $2,000 contribution or the earnings thereon in her 2015 gross income.
d.	Ursula must include only $100 (1/20 of the $2,000 contribution) in her gross income for 2015, but the same amount must be included in gross income for the following 19 years.
e.	None of the above.

4. Jon, age 45, had adjusted gross income of $25,000 in 2015. During the year, he incurred and paid the following medical expenses:

Drugs and medicines prescribed by doctors	$ 300
Health insurance premiums	$ 750
Cosmetic surgery (botox injections)	$2,000
Doctors' fees	$2,250
Eyeglasses	$ 75

4.Jon received $500 in 2015 as a reimbursement for a portion of the doctors' fees. If Jon were to itemize his deductions, what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?

a.	$0
b.	$375
c.	$600
d.	$1,000
e.	None of the above

5. Which of the following is not an itemized deduction?

a.	Medical expenses
b.	IRA contribution deduction
c.	Personal property taxes
d.	Union dues
e.	All of the above are itemized deductions

6. During 2015, Seth, a self-employed individual, paid the following taxes:

Federal income tax	$5,000
State income tax	$2,000
Real estate taxes on land in South America (held as an investment)	$ 900
Personal property taxes based upon value	$ 900
Federal self-employment tax	$ 800

What amount can Seth claim as an itemized deduction for taxes paid during 2015, assuming he elects to deduct state and local income taxes?

a.	$3,800
b.	$4,200
c.	$3,400
d.	$2,500
e.	None of the above

7. Jerry and Ann paid the following amounts during 2015:

Interest on automobile loan	$1,500
Interest on bank loan (proceeds were used to purchase municipal bonds)	$5,000
Qualified home mortgage interest	$3,000

What is the maximum amount they can use as interest expense in calculating itemized deductions for 2015?

a.	$3,000
b.	$3,150
c.	$4,500
d.	$8,000
e.	None of the above

8. For 2015, Eugene and Linda had adjusted gross income of $40,000. Additional information for 2015 is as follows:

Cash contribution to church	$1,200
Tuition paid to a parochial school	$1,200
Contribution to a qualified charity	$ 250
Cash contribution to a needy family	$ 100

What is the maximum amount that they can use as a deduction for charitable contributions for 2015?

a.	$1,500
b.	$1,750
c.	$1,850
d.	$3,050
e.	$1,450

9. . Harris had adjusted gross income in 2015 of $128,000. During the year his personal summer home was almost completely destroyed by a cyclone. Pertinent data with respect to the home follows:

Cost basis	$135,000
Value before casualty	$147,000
Value after casualty	$ 17,000

Harris was partially insured for his loss and in 2015 he received a $113,000 insurance settlement. What is Harris' allowable casualty loss deduction for 2015?

	a.	$4,100
	b.	$4,200
	c.	$9,100
	d.	$9,200
	e.	None of the above

10. Peter is a plumber employed by a major contracting firm. During 2015, he paid the following miscellaneous expenses:

Unreimbursed employee business expenses	$410
Union dues	$600
Tax return preparation fee	$100
Safe deposit box rental fee (used only for investments)	$ 20

If Peter were to itemize his deductions for 2015, what amount could he claim as miscellaneous itemized deductions (before applying the 2 percent of adjusted gross income limitation)?

a.	$700
b.	$1,010
c.	$1,110
d.	$1,130
e.	None of the above

11. Carla is a high school teacher who is required by her school district to take continuing education courses which are offered at the local college. She is also in the process of taking classes at a different university where she is pursuing her Ph.D. to become a research specialist. She pays the tuition for both schools. Which of the following is true?

a.	She may deduct all of the tuition from each school because they are education expenses related to job skill improvement.
b.	She may not deduct tuition from either school.
c.	She may not deduct the continuing education tuition because it is required by her job.
d.	She may deduct the continuing education tuition from the local college because it meets her employer's requirement to maintain her current job skills.
e.	None of the above is correct.

2. Charles, a corporate executive, incurred business related, unreimbursed expenses in 2015 as follows:

Entertainment $ 800

Transportation $ 700

Education $ 400

Assuming that Charles itemizes his deductions, how much of these expenses should he deduct on his 2015 Schedule A, before considering the 2 percent of adjusted gross income limitation?

a.	$700
b.	$1,100
c.	$1,650
d.	$2,000
e.	$1,500

3. Which of the following is correct for Qualified Tuition Programs for 2015?

a.	Contributions are deductible and qualified educational expense distributions are tax-free.
b.	Contributions are not deductible and qualified educational expense distributions are tax-free.
c.	Contributions are deductible and qualified educational expense distributions are taxable.
d.	Contributions are not deductible and qualified educational expense distributions are taxable.

4. Denice is divorced and files a single tax return claiming her two children, ages 7 and 9, as dependents. Her AGI for 2015 is $59,500. Denice's Child Credit for 2015 is:

a.	$2,000
b.	$250
c.	$1,000
d.	$750
e.	$1,750