BOSTON 1. Which of the following statements is correct? A. Steven Strange is single and is claimed as a dependent by his parents. Steven has salary income of $15,000 and files his own tax return. The basic standard deduction for Steven is $15,350. B. Wanda (gross income: $5,000) is married and files a separate tax return (MFS). Since Wanda's gross income ($5,000) is smaller than the basic standard deduction for MFS ($12,550), she does not have to file her tax return. C. In general, a $1 deduction for AGI is better than a $1 non-refundable tax credit. D. A greater deduction from AGI leads to a greater deduction for AGI. E. All of above are incorrect. 2. Which of the following statements is incorrect regrading a self-employed taxpayer? A. Qualified job-related expenses (e.g., auto, travel, gift expenses) are classified as deduction for AGI. B. If 30% of the travel time is business purpose, transportation expense (e.g., airfare) is not deductible. C. In addition to the $0.575 per mile auto expenses, the self-employed taxpayer who chooses the standard mileage method (rather than the actual cost method) can claim deduction on depreciation, gas and oil, repair, insurance, license expenses. D. The auto expenses related to commuting between home and his/her job are not qualified for deduction. E. Job-related education expenses where the education maintains or improves current job skills are deductible. BOSTON 1. Which of the following statements is correct? A. Steven Strange is single and is claimed as a dependent by his parents. Steven has salary income of $15,000 and files his own tax return. The basic standard deduction for Steven is $15,350. B. Wanda (gross income: $5,000) is married and files a separate tax return (MFS). Since Wanda's gross income ($5,000) is smaller than the basic standard deduction for MFS ($12,550), she does not have to file her tax return. C. In general, a $1 deduction for AGI is better than a $1 non-refundable tax credit. D. A greater deduction from AGI leads to a greater deduction for AGI. E. All of above are incorrect. 2. Which of the following statements is incorrect regrading a self-employed taxpayer? A. Qualified job-related expenses (e.g., auto, travel, gift expenses) are classified as deduction for AGI. B. If 30% of the travel time is business purpose, transportation expense (e.g., airfare) is not deductible. C. In addition to the $0.575 per mile auto expenses, the self-employed taxpayer who chooses the standard mileage method (rather than the actual cost method) can claim deduction on depreciation, gas and oil, repair, insurance, license expenses. D. The auto expenses related to commuting between home and his/her job are not qualified for deduction. E. Job-related education expenses where the education maintains or improves current job skills are deductible
