Q1. Problem 5-2 Self-Employed Health Insurance Deduction (LO 5.2)

Serena is a 38-year-old single taxpayer. She operates a small business on the side as a sole proprietor. Her 2021 Schedule C reports net profits of $15,000. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,800 in 2021. Serena also pays long-term care insurance premiums of $600 in 2021.

Calculate Serena's self-employed health care deduction. $fill in the blank 1

Q2. Problem 5-6 Individual Retirement Accounts (LO 5.3)

What is the maximum amount a 55-year-old taxpayer and 52-year-old spouse can put into a Traditional or Roth IRA for 2021, assuming they earn $70,000 in total and are not participants in pension plans? $fill in the blank 1

Q3. Problem 5-17 Taxes (LO 5.7)

Lyndon's employer withheld $8,700 in state income taxes from Lyndon's wages in 2021. Lyndon obtained a refund of $1,700 in this year for overpayment of state income taxes for 2020. State income taxes were an itemized deduction on his 2020 return. His 2021 liability for state income tax is $8,500.

Indicate the amount of Lyndon's deduction for state income taxes on his federal tax return assuming he elects to deduct state income taxes for 2021. $fill in the blank 1

Q4. Problem 5-25 Interest (LO 5.8)

Helen paid the following amounts of interest during the 2021 tax year:

Mortgage interest on Dallas residence (loan balance $50,000)	$1,600
Automobile loan interest (personal use only)	440
Mortgage interest on Vail residence (loan balance $50,000)	3,100
Student loan interest	775

Calculate the amount of Helen's itemized deduction for interest (after limitations, if any) for 2021. $fill in the blank 1

Q5. Problem 5-27 Contributions (LO 5.9)

Barbara donates a painting that she purchased three years ago for $8,000, to a university for display in the president's office. The fair market value of the painting on the date of the gift is $14,000. If Barbara had sold the painting, the difference between the sales price and her cost would have been a long-term capital gain.

How much is Barbara's charitable contribution deduction for this donation?

$fill in the blank 1 is deductible because the painting

waswas not

put to a use directly related to the organization's primary purpose.

Q6. Problem 5-28 Contributions (LO 5.9)

Jerry made the following contributions during 2021:

His synagogue (by check)	$1,100
The Republican Party (by check)	180
The American Red Cross (by check)	200
His lodge fraternal organization for tickets to (a social club) a holiday party	100

In addition, Jerry donated used furniture to the Salvation Army costing $400 with a fair market value of $200. Jerry has adjusted gross income of $45,000, the necessary written acknowledgments, and he itemizes his deductions.

Complete the Gifts to Charity section of Schedule A below to show Jerry's deduction for 2021.

Enter all amounts as positive numbers.

Gifts to Charity	11	Gifts by cash or check. If you made any gift of $250 or more,
	see instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	11	fill in the blank 1
Caution: If you made a gift and got a benefit for it, see instructions.	12	Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 . . . . .	12	fill in the blank 2
13	Carryover from prior year. . . . . . . . . . . . . . . . . . . . . . . . .	13
14	Add lines 11 through 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14	fill in the blank 3

Q7. Problem 5-29 Contributions (LO 5.9)

Richard donates publicly traded Gold Company stock with a basis of $1,000 and a fair market value of $15,000 to the college he attended, which is considered a public charity. Richard has owned the shares for 10 years.

How is this contribution treated on Richard's tax return?

Assuming his adjusted gross income is at least $50,000, Richard is allowed to deduct $fill in the blank 1 on his

Schedule ASchedule BSchedule CSchedule D

. However, Richard may elect to use the 50-percent AGI limitation and deduct $fill in the blank 3.