Multiple Choice Questions
1. Deductible expenses for moving do not include:
a. The cost of transporting household goods.
b. Hotel costs while moving to the new location.
c. Meals incurred during the move.
d. Temporary storage of household goods (30 days or less) for a limited time upon arrival at the new location.
2. To meet the distance test, the new job location must be:
a. 100 miles from the old job location.
b. At least 50 miles farther than the old residence was from the old job location.
c. At least 50 miles farther than the new residence is from the old job location.
d. 100 miles from the old residence.
3. The deduction for half of the self-employment tax is:
a. Based on a total of 7.65% of FICA taxes.
b. Based on the gross earnings of the business.
c. Based on filing status.
d. Based on the net earnings of the business.
4. Rick is a self-employed carpenter who had net earnings from self-employment of $3,500. He paid $325 per month for health insurance over the last year. Rick is entitled to a for AGI deduction for health insurance of:
a. $0.
b. $325.
c. $3,500.
d. $3,900.
5. Penalties for the early withdrawal of savings are reported by the financial institution on:
a. Box 2 of Form 1099-INT.
b. Form EWIP.
c. A letter of notification.
d. None of the above.
6. Roger is required under a 2013 divorce decree to pay $600 of alimony and $300 of child support per month for 12 years. In addition, Roger makes a voluntary payment of $100 per month. How much of each total monthly payment can Roger deduct in 2014?
a. $100.
b. $300.
c. $600.
d. $700.
7. The Renfros were granted a decree of divorce in 2013. In accordance with the decree, Josh Renfro is to pay his ex-wife $24,000 a year until their only child, Evelyn now 10, turns 18, and then the payments will decrease to $14,000 per year. For 2014, how much can Josh deduct as alimony for the year?
a. $10,000.
b. $14,000.
c. $24,000.
d. None of the above.
8. At the beginning of June 2014, Julia left her husband and is currently living in an apartment. The couple has no children. At the end of the current year, no formal proceedings have occurred in relation to the separation or potential divorce. Julia has been making a $2,000 a month maintenance payment since moving out. How much can Julia deduct as alimony for 2014?
a. $0
b. $2,000.
c. $12,000.
d. $24,000.