Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

39. Aisha, a single 40-year-old doctor, is covered by a qualified retirement plan at work. Her salary is $115,000, and her total AGI is $131,000.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
39. Aisha, a single 40-year-old doctor, is covered by a qualified retirement plan at work. Her salary is $115,000, and her total AGI is $131,000. The maximum contribution she can make to a Roth IRA in 2021 is A) 0. B) $2,400. C) $3,600. D) $6,000. 40. Feng starts a new job on July 1 and becomes covered under the employer's health insurance plan which has an annual deductible of $2,400. Feng contributes the maximum amount into a Health Savings Account. Which of the following statements regarding Feng's Health Savings Account is correct? A) Feng can contribute and deduct $1,200 for AGI. B) Feng's contribution will be deductible if he itemizes, and the contribution along with his out-of-pocket medical expenses exceed 7.5% of AGI. C) If Feng withdraws $500 to pay for X-rays, the $500 is taxable. D) Interest income earned on the HCA is taxable. . . 41. Paul pays the following medical expenses this year: $1,500 for doctor bills for Paul's son who is claimed as a dependent by Paul's former spouse. $300 for Paul's eyeglasses. $900 for Paul's dental work. $3,800 for Paul's face lift. Paul, a newscaster, is worried about the wrinkles around his eyes. How much can Paul include on his return as qualified medical expenses before limitation? A) $1,200 B) $2,400 C) $2,700 D) $6,500 42. Bryan's medical expenses for 2021 include the following: Medical premiums Doctors fees Hospital fees Prescription drugs Eyeglasses General purpose vitamins $10,850 2,000 3,350 600 350 100 Bryan's AGI for the year is $33,000. He is single and age 49. None of the medical costs are reimbursed by insurance. After considering the AGI floor, Bryan's medical expense deduction is A) $12,900. B) $13,850. C) $14,675. D) $16,325. 43. Candy paid the following taxes this year: Real estate taxes on rental property he owns Real estate taxes on his own residence Federal income taxes State income taxes Local city income taxes $4,000 3,600 18,000 5,400 1,500 What amount can Candy deduct as an itemized deduction on her tax return? A) $10,000 B) $28,500 C) $10,500 D) $14,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematics Of Finance

Authors: Petr Zima

2nd Edition

0070082030, 9780070082038

More Books

Students also viewed these Accounting questions

Question

What is a network?

Answered: 1 week ago

Question

=+c) The change in your pocket by year minted. Section 22.2

Answered: 1 week ago