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Question 1

Which of the following is an itemized deduction?

Medical expenses

A contribution to an HSA

A contribution to a traditional IRA

Student loan interest.

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Question 2

Which of the following is not one of the four main categories of itemized deductions?

Individual Retirement Accounts contributions

Charitable contributions.

Casualty losses.

Qualified personal residence mortgage and home equity interest.

Question 3

Jack purchased a personal residence for $180,000, and insured it for the full replacement value. It had a fair market value of $195,000 when it was damaged by a fire. The fair market value after the fire was $155,000, and Jack received insurance proceeds of $15,000. What is the net amount of casualty loss that Jack can deduct if his adjusted gross income is $80,000?

$11,000

$16,900

$17,000

$25,000

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Question 4

What difference does it make if a taxpayers expenses are classified as unreimbursed employee expenses rather than expenses from self-employment? 1. Unreimbursed employee expenses are subject to a hurdle of 2% of the taxpayers AGI. They also require the taxpayer to itemize before the deduction can be taken. 2. Expenses from self-employment are deducted above the line and have no AGI floor. 3. Unreimbursed employee expenses are deducted above the line and have no AGI floor.

1 only

2 only

1 and 2

1 and 3

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Question 5

Which of the following are below the line income tax deductions? 1. Medical expenses. 2. Alimony paid. 3. Moving expenses. 4. Tax preparation fees.

1 and 3

1 and 4

1, 2, and 3

1, 2, 3, and 4

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Question 6

Andrea and Elliott are married and together they have AGI of $80,000. They have no dependents and they file a joint federal income tax return. Each pays $4,800 for medical insurance. During 2016, they paid the following amounts for medical care, for which they were not reimbursed by insurance:

Doctor and dentist bills and hospital expenses = $3,600

Prescription drugs = $800

Determine the deduction allowable for medical expenses paid during that year.

$0

$1,200

$6,000

$8,000

Question 7

During the current year, Austin, a self-employed individual, paid the following amounts:

Federal income tax - $5,000

State income tax - $3,000

Real estate taxes on land (held as an investment) - $800

State sales taxes - $600

State occupational license fee - $400

What amount can Austin deduct as taxes by itemizing his deductions?

$3,000

$3,400

$3,800

$4,800

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Question 8

Last year, Jacques paid the following interest:

Interest on home mortgage $7,300

Interest on loan to purchase furniture for personal residence $1,000

Interest on a loan used to purchase State of Louisiana general purpose bonds $1,800

If Jacques itemizes his deductions for last year, what is the amount of deductible interest expense?

$7,300

$8,300

$9,100

$10,100

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Question 9

Colby has decided to make charitable contributions of property this year. He donates a picture (adjusted basis $900, fair market value $40,000) that he had created to a local art museum (qualified 501(c)(3) organization). His adjusted gross income is $90,000. What is his charitable deduction for this year?

$0

$900

$36,000

$40,000

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Question 10

Which of the following expenses are deductible, but subject to the 2% limitation on Form 1040, Schedule A, Job Expenses and Most Other Miscellaneous Itemized Deductions?

License of a self-employed plumber.

Appraisal fees on the sale of your personal residence.

Protective gear required to work in a chemistry lab.

The cost of hauling tools to work in the trunk of your car.

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