Multiple Choice Questions
1. For AGI, or above-the-line, deductions:
a. Are determined by the taxpayer.
b. Are set by statute.
c. Increase tax liability.
d. Are reported in Schedule A.
2. For AGI, or above-the-line, deductions:
a. Increase AGI.
b. Reduce tax credits.
c. Are only available for MFJ.
d. Can reduce overall tax liability.
3. Student loan interest is reported on Form:
a. 1098-SA.
b. 1098-E.
c. 1099-S.
d. 1098-GA.
4. Taxpayers eligible to take the student loan interest deduction do not include:
a. A student who is claimed as a dependent on another’s return.
b. A self-supporting student.
c. The parents of a dependent student who took out the loan on their child’s behalf.
d. A married student filing jointly.
5. In 2010 through 2013, Korey, who is single, borrowed a total of $25,000 for higher education expenses on qualified education loans. In 2014, while still living at home and being claimed by his parents as a dependent, he began making payments on the loan. The first year’s interest on the loan was reported as $550 and his AGI for year was less than $65,000. The amount that Korey can claim on his tax return is:
a. $0.
b. $225.
c. $340.
d. $550.
6. For 2014, the maximum aggregate annual contribution that an individual taxpayer, under age 55, can make to a Health Savings Account (HSA) for family coverage is:
a. $1,250.
b. $3,300.
c. $6,550.
d. $12,700.
7. To be eligible to fund a Health Savings Account (HSA), a taxpayer must meet which of the following criteria:
a. An employee (or spouse) who works for an employer with a high deductible health plan.
b. An uninsured employee who has purchased a high-deductible health plan on their own.
c. A self-employed individual.
d. Any of the above.
8. To be eligible to deduct moving expenses, a taxpayer:
a. Must meet the time test.
b. Must meet the distance test.
c. Must meet one of the change of job location, time, or distance tests.
d. Must meet all three of the change of job location, time, and distance tests.