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Vasa is an ordained minister. His church provides him a housing allowance, all of Question $17$ of $30.$

Why might a military taxpayer want to consider making contributions to the military Thrift Savings Plan while deployed to a combat zone? Nontaxable combat pay is:

Subject to FICA taxes, and contributions to the military Thrift Savings Plan can defer FICA tax on at least some of the combat pay.

Not included in AGI for purposes of determining taxability of current contributions to the military Thrift Savings Plan. Therefore, the taxpayer can pay tax on their current contributions at a lower rate.

Not included in adjusted gross income $($AGI$)$ for purposes of determining the Saver's Credit. Therefore, the contributions to the military Thrift Savings Plan may increase the tax benefits of saving for retirement.

A good source of funds to help the taxpayer increase their tax basis in the military Thrift Savings Plan account.

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Question $18$ of $30.$

Sonny Salazar was deployed in a combat zone for all of $2022.$ He is married and has two children. Sonny's nontaxable combat pay in $2022$ is $$14,000.$ His wife worked part$-$time while Sonny was deployed and earned $$7,000.$ What is the maximum amount of earned income the Salazars can report for Earned Income Tax Credit $($EITC$)$ purposes in $2022?$

$$7,000$

$$14,000$

$$21,000$

$$28,000$

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Question $19$ of $30.$

Amir retired from active duty in $2021$ and began taking disbursements from his traditional Thrift Savings Plan $($TSP$).$ His contributions over the years included $$12,000$ of combat pay. Which of the following statements is TRUE about his distributions?

The $$12,000$ he contributed from combat pay will not be taxable when it is distributed, but the other contributions and all his earnings are taxable.

All his distributions are now nontaxable because of his service.

The $$12,000$ he contributed and the earnings from that money are tax$-$exempt; his other contributions and earnings are taxable.

All his distributions are now taxable because the contributions were made pre$-$tax.

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Question $20$ of $30.$

Kwame Jeffries is a legal resident of Colorado. He was serving on active duty in Alabama in $2018$ when he met and married his wife, Adele, who had lived in Alabama her whole life. In $2022,$ Kwame received PCS orders relocating him to Hawaii, so he and Adele made the move.

In light of the MSRRA, which of the following statements is TRUE regarding Adele's legal state of residency?

She is required to maintain her legal residency in Alabama.

She will be a legal resident of Hawaii when they arrive there.

She may elect to be considered a legal resident of Colorado or Alabama.

She may elect to be considered a legal resident of either Hawaii or Alabama.

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Question $21$ of $30.$

Martina is domiciled in West Virginia, but attended college in Louisiana. She joined the military right out of college and was sent to Fort Sill, Oklahoma to attend basic training. From there, she moved to Georgia for advanced training before being deployed to Germany. What is Martina's legal state of residence?

Oklahoma.

Georgia.

Louisiana.

West Virginia.

Mark for follow upwhich Vasa spends to rent his home and pay his utilities. Vasa can:

Exclude the housing allowance from net earnings for self$-$employment tax.

Exclude the portion of the allowance spent on utilities from net earnings for self$-$employment tax.

Exclude the housing allowance from net earnings for income tax.

Exclude the housing allowance from net earnings for all tax.

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Question $15$ of $30.$

In $2022,$ Father Pyle received $$38,500$ salary for ministerial services, $$2,750$ for performing weddings, and $$13,750$ excluded parsonage allowance $($a total of $$55,000).$

He incurred $$5,500$ of unreimbursed expenses related to his ministerial Form W$-2$ salary and $$1,500$ related to the weddings performed as self$-$employed.

Consider that the excluded parsonage allowance will affect the allocation of expenses.

How much of these expenses will be deductible for income tax purposes?

$$375$

$$1,125$

$$1,500$

$$7,000$

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Question $16$ of $30.$

Maddie is an ordained minister working for Blessed Church. Her earnings for services performed for the church, for federal income tax purposes, are generally considered:

Tax$-$exempt income.

Wage income.

Unearned income.

Self$-$employment income.

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