DETAILED ANSWERS|LATEST UPDATE!!!!!!2026|GUARANTEED
CORRECT = 100
100
INCORRECT=0
STUDY MATERIALS.......DESIGNED TO HELP YOU SUCCEED
SPOTLIGHT 1
1
, WELL DETAILED ANSWERS|LATEST
UPDATE!!!!!!2026|GUARANTEED PASS|GRADED
Sam pays his 19 yr. old son, Joshua, $550/month to maintain the lawn & garden at the family
residence. Sam is subject to what household employment tax rules for Joshua? -
ANSWER A. Since Joshua is not performing any child case services, the household
tax rules do not apply.
B. Since Joshua is the taxpayer's child under age 21, the household employment tax rules do
not apply.
C. Since no evidence is given that Joshua is a student, he is considered to be Sam's
household employee.
D. Since Joshua's wages are over $2,100 for the yr., Sam is subject to the household
employment tax rules for Joshua.
Answer: B
A taxpayer should include which of the following when figuring their federal gross income? -
ANSWER A. Prior-year federal income tax refund.
B. Ordinary dividends.
C. Personal injury compensation.
D. Qualified disaster relief payments.
Answer: B
A taxpayer is required to file Schedule 1 (Form 1040) when claiming which of the following? -
ANSWER A. Retirement savings contributions credit.
B. Health savings account deduction
C. Education credit
2
, D. Excess advance premium tax credit repayment
Answer: B
In 2018, the excise tax for excess contributions to a health savings account is
_____________. - ANSWER A. 0%
B. 6%
C. 10%
D. 20%
Answer: B
In 2018, the additional excise tax for non-qualified distributions from a health savings
account is ____________. - ANSWER A. 0%
B. 6%
C. 10%
D. 20%
Answer: D
Cynthia works full-time as a teacher's aide at an elementary school. In 2018, she paid $250
to participate in a professional development course, hoping to upgrade her job skills. Since
she was no reimbursed for this expense, she would like to claim the educator expense
deduction. As Cynthia's Tax Pro, what advice would you offer her? - ANSWER A. She
may not claim the deduction b/c she is not considered an eligible educator.
B. Since she spent the $250 on professional development rather than classroom supplies,
she is not eligible for this deduction.
C. She may claim the deduction since she is an eligible educator and the professional
development course is a qualified expense.
D. Since employee business expenses are no longer deductible on SCH A, she may not claim
a deduction for the cost of the professional development course.
Answer: C
3
CORRECT = 100
100
INCORRECT=0
STUDY MATERIALS.......DESIGNED TO HELP YOU SUCCEED
SPOTLIGHT 1
1
, WELL DETAILED ANSWERS|LATEST
UPDATE!!!!!!2026|GUARANTEED PASS|GRADED
Sam pays his 19 yr. old son, Joshua, $550/month to maintain the lawn & garden at the family
residence. Sam is subject to what household employment tax rules for Joshua? -
ANSWER A. Since Joshua is not performing any child case services, the household
tax rules do not apply.
B. Since Joshua is the taxpayer's child under age 21, the household employment tax rules do
not apply.
C. Since no evidence is given that Joshua is a student, he is considered to be Sam's
household employee.
D. Since Joshua's wages are over $2,100 for the yr., Sam is subject to the household
employment tax rules for Joshua.
Answer: B
A taxpayer should include which of the following when figuring their federal gross income? -
ANSWER A. Prior-year federal income tax refund.
B. Ordinary dividends.
C. Personal injury compensation.
D. Qualified disaster relief payments.
Answer: B
A taxpayer is required to file Schedule 1 (Form 1040) when claiming which of the following? -
ANSWER A. Retirement savings contributions credit.
B. Health savings account deduction
C. Education credit
2
, D. Excess advance premium tax credit repayment
Answer: B
In 2018, the excise tax for excess contributions to a health savings account is
_____________. - ANSWER A. 0%
B. 6%
C. 10%
D. 20%
Answer: B
In 2018, the additional excise tax for non-qualified distributions from a health savings
account is ____________. - ANSWER A. 0%
B. 6%
C. 10%
D. 20%
Answer: D
Cynthia works full-time as a teacher's aide at an elementary school. In 2018, she paid $250
to participate in a professional development course, hoping to upgrade her job skills. Since
she was no reimbursed for this expense, she would like to claim the educator expense
deduction. As Cynthia's Tax Pro, what advice would you offer her? - ANSWER A. She
may not claim the deduction b/c she is not considered an eligible educator.
B. Since she spent the $250 on professional development rather than classroom supplies,
she is not eligible for this deduction.
C. She may claim the deduction since she is an eligible educator and the professional
development course is a qualified expense.
D. Since employee business expenses are no longer deductible on SCH A, she may not claim
a deduction for the cost of the professional development course.
Answer: C
3
