Which of these statements about benefit programs is TRUE?

Generally, taxpayers with higher income benefit more from programs that lower their AGI. Taxpayers with lower income may reduce refundable tax credits if they lower their AGI.

Generally, taxpayers with lower income benefit more from programs that lower their AGI. Taxpayers with higher income may reduce refundable tax credits if they lower their AGI.

Most employee benefit programs do not have an impact on a taxpayer's return.

Generally, taxpayers with higher income benefit more from refundable credits; AGI is not a major factor.

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Question $23$ of $30.$

Which of the following individuals may qualify for a health savings account $($HSA$)?$

Ruth and Jim are covered by Medicare and a supplemental insurance policy.

Paul and Mary are covered by a plan through Paul's work. Their deductible is $$2,800.$

Tom is covered by Medicaid.

Carla has health insurance through the Marketplace. Her deductible is $$600.$

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Question $24$ of $30.$

A $401($k$)$ compensation plan allows employees to contribute $\_\_\_\_\_\_\_\_\_\_.$

To the plan only if they are not highly$-$compensated employees.

Up to $25\%$ of their pay.

A portion of their wages to an individual account under the plan.

But their employer must contribute a matching or nonelective contribution.

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Question $25$ of $30.$

Hana is $22$ years old and just graduated. She got her first job with a multinational company, MegaCorp, Inc., and has come to you for her first tax return. She has questions about what benefits she should be looking at$.$ How would you determine the best options to recommend?

Generally, all large companies have the same benefits, so you can assume that Hana will have access to any program you might suggest. Pick out some of your preferences and share them with her.

Look at her Form W$-2$ and determine which benefits she is currently using, then make recommendations regarding those benefits for her.

Ask Hana what options are available to her and go over the choices with her. Because there are many variables, she just needs to try some options and see how her tax is affected next year.

Ask Hana what options are available to her and go over the choices with her. Use What If mode in BlockWorks to give her the most accurate possible numbers and make a note in the return to follow up with her next year to adjust the selections as needed.

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Question $26$ of $30.$

Which of the following employee benefits has a direct impact on a taxpayer's tax liability?

Snacks and drinks available in the breakroom at no charge.

Federal withholding.

$403($b$)$ contributions with an employer match.

Complimentary parking at the office.

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Question $27$ of $30.$

Which of the following taxpayers can take a full deduction on a traditional IRA contribution for $2022?$

Tierra files head of household; her modified AGI is $$81,000.$

Miguel is married but files separately. His modified AGI is $$12,400.$

Rohan and Baran are married filing jointly. Their modified AGI is $$108,000.$

Moe files single. His modified AGI is $$78,000.$

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