1.

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?

Select one:

a. Less than $63,000

b. Less than $121,000

c. Limits do not apply

d. Less than $199,000

2.

In June 2018, Rick moved from Norfolk, Virginia, where he was stationed in the military, to Los Angeles, California, his new base. He drove his car from Norfolk, Virginia to Los Angeles, California. The total mileage is 3,250 miles. He paid $180 for parking and tolls, $680 for lodging, and $300 for meals during the trip. What amount of the moving expenses can Rick deduct as an adjustment to income on his 2018 tax return if he chooses to use the standard mileage rate?

Select one:

a. $1,595

b. $1,745

c. $1,445

d. $1,260

3.

Jake is a self-employed carpenter. Last year his net self-employment income was $25,200. How much would Jakes self-employment tax be on line 57 of Schedule 4 (Form 1040)?

Select one:

a. $1,781

b. $1,928

c. $3,856

d. $3,561

4.

Sylvia graduated from college last year and started repaying her student loans. She received a statement from the bank showing she paid $2,750 in interest on her student loans for the year. Her total income before adjustments is $38,500, and she meets all requirements to be able to deduct the interest. How much, if any, will Sylvia be allowed to deduct as an adjustment to her income?

Select one:

a. $ 0

b. $2,500

c. $2,750

d. $1,375

5.

Joseph cashed in a CD (certificate of deposit) early because he needed money quickly to buy a new car. Unfortunately, the bank charged him an early withdrawal penalty of 5% which amounted to $250. Can Joseph deduct the penalty on his taxes and, if so, how much can be deducted?

Select one:

a. Yes, but only half of the early withdrawal penalty may be deducted.

b. No, Joseph will not be allowed to deduct any of the early withdrawal penalty.

c. Yes, but Joseph can only deduct the early withdrawal penalty if he uses Schedule A and itemizes his deductions.

d. Yes, Joseph can deduct $250 on line 30 of Schedule 1 (Form 1040) as an adjustment to income.

6.

Avery and Jenna divorced in December 2017. Avery was ordered by the court to pay Jenna $750 each month for child support and $250 each month in alimony. He made the payments for the entire year. How much of the payments will Avery be able to claim as a deduction when he files his 2018 tax return?

Select one:

a. $12,000

b. $ 9,000

c. $ 3,000

d. $ 0

7.

Darren and Amy are married and filing separate returns for 2018. During 2018, Darren paid $3,500 in interest on his student loan. His modified AGI is $61,580. How much of the student loan interest can Darren deduct as an adjustment to income on his 2018 tax return?

Select one:

a. $2,500

b. $ 0

c. $1,750

d. $3,500

8.

In 2018, Charlotte had to relocate to another city required by her employer. The new home is 800 miles away from her previous home. She paid $5,000 for moving costs and drove her car 800 miles to her new home. She paid $150 for one-night lodging on the trip and $50 for meals during the trip. She also received a $2,000 reimbursement from her employer. How much is Charlottes moving expense adjustment?

Select one:

a. $5,294

b. $3,344

c. $3,294

d. $ 0