1. Mr. and Mrs. Fay provided substantially all the support, in their own home, for their son, John, age 22, and for Mrs. Fay's neice, Mary, age 17. John had $6,000 of income, and Mary's income was $2,500. The Fay's paid the following medical expenses during the year.

Prescription medicines:

Forthemselves............................................................................$400

ForJohn...........................................................................................500

ForMary...........................................................................................100

Doctors:

Forthemselves.............................................................................600

ForJohn........................................................................................900

ForMary......................................................................................100

What is the total amount of medical expenses (before application of any limitation rules) that would enter into the calculation of itemized deductions on the Fay's tax return?

$1,000

$1,200

$2,300

$2,600

2.Victor and Myrtle Buckner (both age 33) had adjusted gross income of $30,000. For 2020, they paid the following medical expenses:

Prescriptionmedicines.............................................................$800

Doctors......................................................................................2,000

Medicalinsurance........................................................................700

Cost ofvitamins..........................................................................500

What is the amount of the allowable deduction for medical expenses for the Buckners?

$263

$500

$1300

$1350

3.William paid the following expenses during 2020:

Interest on automobile loan.................................................... ....................................... 51,500

Interest on bank loan (loan proceeds were used to purchase municipal bonds)..... 5,000

Interest on home mortgage for period January 1 to June 29, 2020.........................1,800

Penalty payment for prepayment of home mortgage on June 29. 2020 .................1,200

What is the maximum amount that William can utilize as interest expense in calculating itemized deductions for 2020?

$3,000

$3,150

$3,300

$9,500

4.Pete Peters Is a mechanic employed by an auto dealer. During the year he paid the following miscellaneous personal expenses:

Specialized work clothes (required by employer)............................................ $400

Uniondues.............................................................................................................600

Preparation ofwill..............................................................................................150

Cost of income taxpreparation.........................................................................100

Safe deposit box rental (used only for personaleffects).................................20

If Pete were to calculate his itemized deductions. what amount could he claim as miscellaneous deductible expenses for 2020 if his adjusted gross income is $20.000?

$0

$700

$1,100

$1,270

5.During 2020 Bill Edwards was assessed a deficiency on his 2017 federal income tax return. As a result of this assessment. he had to pay $6259 determined as follows;

Additional tax...............................................................................$5,000

Penalty...............................................................................................850

Interest..............................................................................................500

$6350

This payment of $6.350 will allow Bill to increase his itemized deductions for 2020 by:

$0

$50

$500

$1350