Self-Employed Health Insurance Deduction. (Obj. 3) 

a. What is the maximum self-employed health insurance deduction that can be claimed as a deduction for AGI? 

b. Under what conditions would a taxpayer not be eligible for the self-employed health insurance deduction? 

2 .IRA Contributions. (Obj. 4) Joyce and Barry Bright are both employed and 56 years of age. In 2014 Barry earned wages of $2,500; Joyce earned wages of $86,530. Joyce is an active participant in her employer-maintained pension plan. The Brights plan to file a joint tax return. Their modified AGI is $106,782. 

a. What is the latest date by which an IRA contribution must be made in order for it to be claimed on the Brights’ 2014 return?

 b. Can the payments be claimed on Form 1040EZ? On Form 1040A? 

c. What is the maximum amount Joyce and Barry can each contribute to an IRA and be able to deduct for 2014? 

d. Are the earnings from the IRA subject to federal income taxes in 2014? Explain.   

Answer rating: 100% (QA)

a The maximum self employed health insurance deduction that can be claimed as a deduction for AG I i... View the full answer