1) The taxpayer must file Schedule A, Itemized Deductions, to claim which of the following deductions?

a) Mortgage interest paid.

b) Student loan interest deduction.

c) Educator expenses.

d) IRA deduction.

2) Melba receives most of her income from wages from her job as a high school teacher. She also receives supplemental income from freelance tutoring part-time during the summer. Because her tutoring income is not subject to withholding, Melba is concerned that she will have a balance due at the end of the year. Which of the following is an option you can recommend to Melba to avoid a balance due?

a) Decrease her withholding allowances by submitting Form W-4 to her employer.

b) Claim an exemption from withholding.

c) Send a notarized letter to her employer requesting that they withhold additional amounts from her pay each month.

d) Investigate whether she qualifies to classify her tutoring income as a hobby rather than as business income.