Tax Planning Exam 2 Questions And
Answers With Verified Solutions 100%
Correct Rated A+
above the line deductions are also known as adjustments to income -
ANSWER✔✔ true
whenever expenses are associated with a business activity, they are below the line
deductions - ANSWER✔✔ false, whenever expenses are associated with a
business activity they are above the line deductions
taxpayers may deduct the lesser of their itemized deductions or the standard
deduction - ANSWER✔✔ false, taxpayers may deduct the greater of their itemized
deductions or the standard deduction
above the line deductions are usually considered to be more favorable to the
taxpayer on a dollar for dollar basis - ANSWER✔✔ true
individuals enrolled in medicare qualify to establish an HSA - ANSWER✔✔ false,
individuals in medicare do not qualify for an HSA
the max allowable contribution to an HSA is reduced by any contributions made to
an MSA - ANSWER✔✔ true
self employed individuals may deduct 100% of health insurance premiums paid on
behalf of themselves and their dependents - ANSWER✔✔ true
, the long term care contract must be a qualified contract in order to receive a
deduction - ANSWER✔✔ true
an unmarried taxpayer can make a contribution to an IRA even if he doesn't have
earned income - ANSWER✔✔ false, to make a contribution to an IRA a taxpayer
must have earned income
active participation in a retirement plan does not affect the deductibility of a
traditional IRA - ANSWER✔✔ false, deductible traditional IRA contributions are
phased out over specified AGI ranges for active participants
the deductibility threshold for a traditional IRA is increased for a non active
participant spouse - ANSWER✔✔ true
contributions to traditional and roth IRAs that are in excess of the allowable
amount are subject to a 4% penalty - ANSWER✔✔ false, contributions to
traditional and roth IRAs that are in excess of the allowable amount are subject to a
6% penalty
if an employer reimburses an employee for moving expenses the employee may
not claim a deduction based on the same expenses - ANSWER✔✔ true
temporary living expenses may be deducted as moving expenses - ANSWER✔✔
false, temporary living expenses cannot be deducted as moving expenses
educator expenses in excess of 250 may be deducted below the line as an
unreimbursed employee business expense - ANSWER✔✔ true
Answers With Verified Solutions 100%
Correct Rated A+
above the line deductions are also known as adjustments to income -
ANSWER✔✔ true
whenever expenses are associated with a business activity, they are below the line
deductions - ANSWER✔✔ false, whenever expenses are associated with a
business activity they are above the line deductions
taxpayers may deduct the lesser of their itemized deductions or the standard
deduction - ANSWER✔✔ false, taxpayers may deduct the greater of their itemized
deductions or the standard deduction
above the line deductions are usually considered to be more favorable to the
taxpayer on a dollar for dollar basis - ANSWER✔✔ true
individuals enrolled in medicare qualify to establish an HSA - ANSWER✔✔ false,
individuals in medicare do not qualify for an HSA
the max allowable contribution to an HSA is reduced by any contributions made to
an MSA - ANSWER✔✔ true
self employed individuals may deduct 100% of health insurance premiums paid on
behalf of themselves and their dependents - ANSWER✔✔ true
, the long term care contract must be a qualified contract in order to receive a
deduction - ANSWER✔✔ true
an unmarried taxpayer can make a contribution to an IRA even if he doesn't have
earned income - ANSWER✔✔ false, to make a contribution to an IRA a taxpayer
must have earned income
active participation in a retirement plan does not affect the deductibility of a
traditional IRA - ANSWER✔✔ false, deductible traditional IRA contributions are
phased out over specified AGI ranges for active participants
the deductibility threshold for a traditional IRA is increased for a non active
participant spouse - ANSWER✔✔ true
contributions to traditional and roth IRAs that are in excess of the allowable
amount are subject to a 4% penalty - ANSWER✔✔ false, contributions to
traditional and roth IRAs that are in excess of the allowable amount are subject to a
6% penalty
if an employer reimburses an employee for moving expenses the employee may
not claim a deduction based on the same expenses - ANSWER✔✔ true
temporary living expenses may be deducted as moving expenses - ANSWER✔✔
false, temporary living expenses cannot be deducted as moving expenses
educator expenses in excess of 250 may be deducted below the line as an
unreimbursed employee business expense - ANSWER✔✔ true
