Question 1.1. For a taxpayer to be eligible to fund a Health Savings Account (HSA), he or she must be: (Points : 1)

An employee (or spouse) who works for an employer with a high deductible health plan. An employee of a company that offers no health coverage and the employee has purchased a high deductible health plan on their own. A self-employed individual. All of the above.

Question 2.2. In 2013, Robert, who is single, received his Bachelor's degree and started working. In 2014, he began paying interest on qualified education loans and had modified AGI of $70,000. He paid interest of $1,200 in 2014. Which of the following statements is correct? (Points : 1)

The full $1,200 is deductible in arriving at adjusted gross income. Taxpayers are not allowed a deduction for education loan interest in 2014. If his modified AGI had been $75,000, the phase-out rules would have reduced his deductible interest to zero. Due to the phase-out rules, only a portion of the $1,200 will be deductible.

Question 3.3. Which of the following expenses is deductible, but subject to the 2% limitation on Form 1040, Schedule A, Job Expenses and Most Other Miscellaneous Itemized Deductions? (Points : 1)

A blue suit for an accountant. Appraisal fees on the sale of a personal residence. Uniforms for a UPS delivery person. The cost of hauling tools to work in the trunk of a car.

Question 4.4. Which of the following organizations do not qualify for deductible charitable contributions? (Points : 1)

The Red Cross. A political party. Religious organizations. All of the above.

Question 5.5. At the beginning of 2014, Melissa was permanently transferred from her office in New York City to New Jersey. Her office in NYC was 15 miles from her old NY home. For Melissa to meet the distance test for qualifying moving expense deductions, how many miles must the office in New Jersey be from her old home? (Points : 1)

65. 50. 40. 35.

Question 6.6. Abel's car was completely destroyed in an accident that was his fault. His loss was $8,500 and his insurance company reimbursed him $6,500. What amount of casualty loss can Abel claim on his return (before deduction limitations)? (Points : 1)

$ 0 $2,000 $6,500 $8,500

Question 7.7. Paola is a freshman in the UC-Davis degree program in veterinary medicine. In 2014, Paola paid $3,000 in tuition, $500 for books, and $250 for supplies for class. Paola also paid room and board of $3,500. What is the total qualifying education expense for the student loan interest deduction for Paola in 2014? (Points : 1)

$7,250. $3,750. $3,500. $3,000.

Question 8.8. For the current year, Sheila Jones had adjusted gross income of $100,000. During the year, she contributed $6,000 to her church and an additional $3,000 to qualified charities. She also contributed religious artwork with a fair market value of $60,000 and a basis of $20,000 to her church. The church intends to display the religious artwork in the church foyer. If Sheila chooses to itemize her deductions, what is the amount of her deductible charitable contribution? (Points : 1)

$ 9,000. $20,000. $39,000. $49,000.

Question 9.9. Which of the following expenses is not deductible as medical expense? (Points : 1)

Insulin used for diabetes. Wig purchased upon the advice of a physician for the mental health of a patient who has lost all of his/her hair from disease. Swimming lessons, recommended by a doctor for improvement of general health. Acupuncture used to treat migraines.

Question 10.10. If one or more non-cash gifts has a fair market value over $500, the taxpayer must: (Points : 1)

Attach a written explanation to the Form 1040. Complete Schedule D. File Form 8283. Attach a letter from the recipient organization.