Question

1. Which of the following is false about the self-employed health insurance deduction?
a. The deduction cannot be claimed when a subsidized employer health insurance plan is also available.
b. The deduction cannot be claimed if the taxpayer has an overall business loss from self employment.
c. Long-term care premiums may be deducted within specified dollar limitations based on age.
d. The self-employed health insurance deduction is an itemized deduction.
e. Dental insurance is included as deductible self-employed health insurance.
2. Which of the following is a false statement about Health Savings Accounts (HSAs)?
a. Taxpayers who contribute to an HSA must carry qualifying high-deductible health insurance.
b. Contributions to HSAs are deductible for AGI subject to dollar limits.
c. Distributions from HSAs are not taxable when used to pay qualifying medical expenses.
d. Taxpayers covered by Medicare may contribute to HSAs.
e. Distributions from HSAs which are not used to pay qualifying medical expenses are generally subjected to a 20 percent penalty as well as income taxes.
3. Charlene has self-only coverage in qualifying high-deductible health insurance. She is 57 years old and wishes to contribute the maximum amount to her HSA. How much is she allowed to contribute and deduct in 2014?
a. $1,000
b. $1,250
c. $3,300
d. $4,300
e. $6,550
4. All of the following are deductible as moving expenses in 2014, except:
a. The cost of moving household goods
b. Transportation to the new job location
c. Packing expenses
d. Lodging during the move
e. All of the above are deductible moving expenses
5. Lyndon, age 24, has a nonworking spouse and earns wages of $36,000 for 2014. He also received rental income of $5,000 and dividend income of $900 for the year. What is the maximum amount Lyndon can deduct for contributions to his and his wife’s individual retirement accounts for the 2014 tax year?
a. $11,000
b. $3,600
c. $4,500
d. $5,500
e. None of the above
6. Martha and Rob, a married couple, under 50 years of age, have adjusted gross income on their 2014 joint income tax return of $45,000, before considering any IRA deduction. Martha and Rob have no earned income. What is the amount of Martha’s maximum deductible IRA contribution?
a. $3,500
b. $3,000
c. $2,700
d. $5,000
e. $0
7. Donna, age 42 and a single taxpayer, has a salary of $98,000 and interest income of $19,000. What is the maximum amount Donna can contribute to a Roth IRA?
a. $4,000
b. $4,400
c. $4,840
d. $5,500
e. Some other amount
8. Mary has a Roth IRA held more than 5 years to which she has contributed $30,000. The IRA has a current value of $62,000. Mary is 55 years old and she takes a distribution of $38,000. How much of the distribution will be taxable to Mary?
a. $0
b. $8,000
c. $30,000
d. $38,000
e. Some other amount
9. Marge has a Roth IRA held more than 5 years to which she has contributed $30,000. The IRA has a current value of $62,000. Marge is 65 years old and she takes a distribution of $38,000. How much of the distribution will be taxable to Marge?
a. $0
b. $8,000
c. $30,000
d. $38,000
e. Some other amount
10. Mindy has a Roth IRA held longer than 5 years to which she has contributed $30,000. The IRA has a current value of $62,000. Mindy is 55 years old and she takes a distribution of $38,000 after retiring on disability. How much of the distribution will be taxable to Mindy?
a. $0
b. $8,000
c. $30,000
d. $38,000
e. Some other amount


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  • CreatedJuly 16, 2015
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