Deductible medical expenses include all of the following except: a. Over-the Counter medicines directed by a physician O b. Travel expenses incurred to seek medical treatment O c. The cost and care of a guide dog for the blind O d. Cosmetic surgery to correct a medical condition Clear my choice 2. Michele purchased her principal residence on Maarch 1st of the current year. In conjunction with the purchase, she paid $3,000 in points to obtain a lower interest rate on her 15 year mortgage. How much of the $3,000 can Michele deduct in the current year? ut of a $3,000 b. $200 O cso d. $2,000 Next page MacBook Air A taxpayer donates artwork to San Francisco General Hospital. The artwork was sold by the Hospital in a public auction. This was the only charitable contribution the taxpayer made during the year. The artwork was purchased several years ago for $50,000 and it is worth $140,000 at the time of the donation. The taxpayer's AGI is $160,000. Which of the following could be an accurate statement regarding the taxpayer's charitable donation of the artwork? O a. The taxpayer deducts $80,000 in the current year and carries over $60,000 to the next year. O b. The taxpayer deducts $48,000 in the current year and carries over $2,000 to the next year. O c. The taxpayer deducts $48,000 in the current year and carries over $92,000 to the next year d. The taxpayer deducts $50,000 in the current year and carries over 50 to the next year Clear my choice stion 4 ver saved ats out of John age 45, had adjusted gross income of $26,000 in 2020. During the year, he incurred and paid the following medical expenses: Drugs and medicines prescribed by doctors $ 300 Health insurance premiums $ 750 Doctors' fees $2,650 Eyeglasses $ 75 Jon received $900 in 2020 as a reimbursement for a portion of the doctors on were to itemized his deductions, what would be his allowable Flag estion John age 45, had adjusted gross income of $26,000 in 2020. During the year, he incurred and paid the following medical expenses: Drugs and medicines prescribed by doctors $ 300 Health insurance premiums $ 750 Doctors' fees $2,650 Eyeglasses $ 75 Jon received $900 in 2020 as a reimbursement for a portion of the doctors' fees. If Jon were to itemized his deductions, what would be his allowable medical expenses deduction after the adjusted gross income limitation is taken into account? a. $0 b. $ 275 c. $3,775 d. $ 2,875 e. None of these is correct Clear my choice Next page Randy is advised by his physician to install an elevator in his residence, since he is afflicted with heart disease. The cost of installing the elevator is $10,000 and it has an estimated useful life of 10 years. He installs the elevator in January of the current year and pays $10,000 for the installation. The elevator increases the value of his residence by $8,000. Disregarding the limitation based on adjusted gross income, how much of the cost of the elevator may Randy take into account in determining his medical expense deduction for the current year? O a. $0 O b. $1,000 c. $2,000 O d. $10,000 O e. None of these is correct Clear my choice Which of the following charitable contributions is NOT tax deductible? Question 6 Not yet O a. Cash donated to a qualified church answered O b. Clothing to a qualified veteranns' organization Points out of 1.00 O c. Time donated to a qualified veterans' organization Flag question d. All of these are tax deductible nok Air Eugene and Linda had adjusted gross income of $30,000. Additional information for 2020 is as follows: Cash contribution to church $1,600 Tuition paid to a parochial school $1,200 Contribution to a qualified charity $ 400 Cash contribution to a needy family $100 What is the maximum amount they can deduct for charitable contributions in 2020? O a. $ 500 O b. $1,600 O c. $1,700 O d. $2,000 O e. None of these Gail is a single elementary school teacher. She buys the following items for use in her classroom in 2020. Construction paper and tissues $ 45 Materials for decorating the classroom bulletin boards $ 200 Artist's smock used for in-class finger painting $ 30 12 Dozen erasers $ 15 What amount can Gail deduct either as for AGL or from AGI? e a $250 as a for AGI deduction and $30 as a from AGI deduction Margo has $2,200 withheld from her wages for state income taxes during 2020. In March of 2020, she paid $400 in additional taxes for her 2019 state tax return. Her state income tax liability for 2020 is $2,700 and she pays the additional $500 when she files her 2020stat4e tax return in April 2021. What amount should Margo deduct as an itemized deduction for state income taxes on her 2020 federal income tax return, assuming she deducts state and local income taxes? O a. $2,100 O b. $2,500 O c. $2,600 O d. $3,100 O e. None of these Jody is a receptionist (not covered by a retirement plan) with a salary of $40,000 from the hospital where she is employed. She supports her husband Andre, who sells art work and has no earned income. Both are in their twenties What is the maximum total amount that Jody and Andre may contribute to the IRAs a deduct for the 2020 tax year? a. $5,500 b. $6,000 c. $12,000 d. $11,000 e None of these Amy paid the following interest expense during the current year. Qualified home mortgage interest $5,000 Credit cared interest $1,000 Personal bank loan interest $3,000 What is the amount of Amy's interest deduction for the current year? O a. $8,000 O b. $3,000 O c. $4,000 O d. $5,000 O. e. None of these Stewart had adjusted gorss income of $100,000 in 2020. During 2020 he made the following contributions to qualified charities: $7,000 cash 1,000 shares of Able Corporation common stock, acquired in 2010 for $5,000 with a fair market value of $7.000 at the time of the donation What amount can Steward claim as a deduction for charitable contributions in 20202 a $5,000 b. $7,000 c. $10,000 MacBook Air Donald, a 40 year old married taxpayer, has a salary of $55,000 and interest income of $6,000. He is an active participant in his employer's pension plan. What is the maximum amount Donald can contribute to a Roth IRA in 2020? a. $550 O b. $610 O c. $1,220 O d. $3,000 O e. $6,000 Jim lives in Swoyersville. What is Jim's deadline for making a contribution to a Traditional IRA or a Roth IRA for 2020? O a. January 1, 2019 b. December 31, 2020 O c. May 15, 2021 O d. December 31, 2021 Which of the following types of interest is NOT deductible? O a. Qualified mortgage interest on a primary residence O b. Qualified mortgage interest on a second residence O c. Credit card interest O d. All of the above O e. None of the above Which of the following is NOT an itemized deduction ? e a. Medical expenses b. IRA contribution deduction O c. Personal property taxes d. Home mortgage interest O e. All of these are itemized deductions Next page Roberty, age 50, has AGI of $110,000. He has medical expenses of $113,000. How much of the medical expenses can Roberto deduct on his Schedule A for 2020? O a. $0 JO O b. $4,950 O c. $11,000 Fir Tin O d. $2,200 O e. $13,200 3 Which of the following is NOT considered a deductible medical expense ? O a. A face lift ot O b. Eye exams O c. Prescription drugs d. Medical insurance Next page During the current year, George, a salaried taxpayer paid the following taxes, which were not incurred in connection with a a trade or business! Federal income tax (withheld by employer $1,500 State income tax (withheld by employer) $1,100 FICA tax (withheld by employer) $ 700 Real property taxes $ 400 Federal auto gasoline taxes $ 200 $ 50 Federal excise tax on telephone bills What amount can George claim for the current year as a itemized deduction for the taxes paid, assuming he deducts state and local income taxes ? O a. $1,100 O b. $1,150 O c. $1,400 d. $2,000 0 Bill has a mortgage loan on his personal residence, he decides to pay 18 months of interest ($2,000 per month or $36,000) in advance on October 2020. How much of the advance interest payment can he deduct in 2020 7 of a $6,000 b. $24,000 6.535,000 0&cmid 03842 MacBook Air