1 - What percentage of medical insurance payments can self-employed taxpayers deduct as a deduction for adjusted gross income on their 2020 tax returns? a.25 percent b.70 percent c.50 percent d. 100 percent e.30 percent 2- Sharon is a lawyer (not covered by a retirement plan) with a salary of $77,000 from the firm where she is employed. She supports her husband, William, who has no earned income. Both are in their 30s. What is the maximum total amount that Sharon and William may contribute to their IRAs and deduct for the 2020 tax year? a.$12,000 b.$6,000 C.$7,200 d. $0 e.None of these choices are correct. 3 - Pete is 45 and participates in his employer's Section 401(k) plan which allows employees to contribute up to 15 percent of their salary. His annual sa lary is $132,000 in 2020. What is the maximum he can contribute to this plan on a tax deferred basis under a salary reduction agreement? a.$19,500 b.$5,500 c.$19,800 d.$11,000 e.None of these choices are correct. 4 - John is a single, 40-year-old engineer who has earnings of $142,000 from his own business. He is not covered by an employer plan. In 2020, John can make which of the following IRA contributions? A :$7,000 to a Roth IRA, a traditional IRA, or a nondeductible IRA. B.$6,000 to a Roth IRA only. C.$6,000 to a traditional IRA or a nondeductible IRA. D. $6,000 to a traditional IRA, a Roth IRA, or a nondeductible IRA. 5 - In regard to retirement plans for self-employed individuals, whi ch is the false statement? For 2020, the maximum deduction for a contribution for the business owner to a Simplified Employee Pension plan is the lesser of 25 percent of the net earned income (before the deduction) or $57,000. Self-employed individuals may only use Simplified Employee Pension (SEP) plans as retirement plans Contributions to a Simplified Employee Pension plan are made into a special SEP- IRA account. To avoid penalties, taxpayers must make distributions from t heir Simplified Employee Pension plan after they are 70 V2 and not before they reach 59 V. 6 - Janet is 65 years old and on January 1, 2020 she retired from her position as a CPA. In 2020, she prepared a few tax returns for her best clients. She worked out of her home and earned net Schedule C income of $6,000. She paid $5,000 for health insurance, $1,800 for long-term care insurance, and $2,500 for dental insurance. What is Janet's deduction for self-employed health insurance? $9,300 $7,500 $6,000 $5,000 7. In 2020, Andy Kwomo transferred from his employer's office in New York to Miami. As a result, Andy moved his family and household at a cost of $14,000, of which $10,000 was reimbursed by the employer. What is Andy's movin g expense deduction? Up to $10,000, it depends on the type of moving expenses incurred. $10,000. $0. $14,000. 8 - In 2020, Ms. Crabapple, a single elementaty schoolteacher with AGI of $78,000, spent $340 on supplies for her fourth-grade classroom. How can this be treated for tax purposes? $340 deduction reported as a for AGI deduction on Schedule 1 of the Form 1040. $250 deduction reported as a for AGI deduction on Schedule 1 of the Form 1040. $0. No deduction is available for these costs. $340 deduction reported as an itemized deduction for unre imbursed miscellaneous employee business expenses on Schedule A