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. X Feedback Check My Work Self-employed taxpayers are allowed an above-the-line deduction for the cost of providing health insurance for themselves and their families. This deduction is meant to give self-employed taxpayers the same tax treatment available to employees who are offered health insurance as a tax-free benefit of employment. Individual Retirement Accounts (LO 5.3) Karen, 28 years old and a single taxpayer, has a salary of $35,000 and rental income of $33,000 for the 2021 calendar tax year. Karen is covered by a pension through her employer. AGI phase-out range for traditional IRA contributions for a single taxpayer who is an active plan participant is $66,000 - $76,000. a. What is the maximum amount that Karen may deduct for contributions to her traditional IRA for 2021? Feedback Check My Work There are two principal types of IRAS in the U.S. tax law. One is the traditional IRA and the other is the Roth IRA. Annual contributions to a traditional IRA are deductible, and retirement distributions are taxable. The annual deduction maximums are reduced for traditional IRAS if the taxpayer is an active participant in another qualified retirement plan. b. If Karen is a calendar year taxpayer and files her tax return on August 15, what is the last date on which she can make her contribution to the IRA and deduct it for 2021 April 15, 2022