2022 Tax Rules

25. Miscellaneous Questions. (Obj. 3) For each statement, check true or false. True False a. Withdrawals from a Roth IRA may be subject to a 6% early withdrawal penalty. b. Regardless of the number of children, a taxpayer may contribute only $2,000 each year to a Coverdell Education Savings Account c. Contributions to an ABLE account are deductible for AGI. a d. Contributions to a Coverdell Education Savings Account (ESA) must be for a person under age 18. e. The student loan interest deduction is available only for the first 60 months of interest payments. 4-53 Gross Income Exclusions and Deductions for AGI True False f. In 2021, employees may exclude up to $275 a month for parking provided by the employer, even if the parking privilege is discriminatory. g. Under a qualified tuition program (529 plan), if the child does not go to college, a refund is made to the child who must pay taxes on the interest income included in the refund. h. Some employers provide meals to their employees. For the value of the meals to be tax-free, the meals must be served on the premises of the employer for the employer's convenience. 25. Miscellaneous Questions. (Obj. 3) For each statement, check true or false. True False a. Withdrawals from a Roth IRA may be subject to a 6% early withdrawal penalty. b. Regardless of the number of children, a taxpayer may contribute only $2,000 each year to a Coverdell Education Savings Account c. Contributions to an ABLE account are deductible for AGI. a d. Contributions to a Coverdell Education Savings Account (ESA) must be for a person under age 18. e. The student loan interest deduction is available only for the first 60 months of interest payments. 4-53 Gross Income Exclusions and Deductions for AGI True False f. In 2021, employees may exclude up to $275 a month for parking provided by the employer, even if the parking privilege is discriminatory. g. Under a qualified tuition program (529 plan), if the child does not go to college, a refund is made to the child who must pay taxes on the interest income included in the refund. h. Some employers provide meals to their employees. For the value of the meals to be tax-free, the meals must be served on the premises of the employer for the employer's convenience