Question 54

In the 2019 tax year, Sean suffered a $5,000 personal property loss when a fire burned part of his home that was declared by the government as a Federally-Declared Disaster Area. His Adjusted Gross Income for the 2020 tax year was $75,000.What is the correct percentage that Sean will need to use to reduce his personal property loss when preparing Form 4684, Casualties and Thefts? a) 5% b) 10% c) 15% d) 0%

Question 55

George and Betty are married and file a joint return. They are both over age 65. George was quite ill (not COVID-19) and incurred considerable medical expenses during the year. Which of the following options is a qualified medical expense? a) Health Savings Account (HSA) payments. b) Surgery to treat defective vision. c) Life insurance premiums. d) Medicine purchased without a prescription.