Question 1

The election to itemize is appropriate when total itemized deductions are less than the standard deduction based on the taxpayer's filing status.

Accepted Answer

A) True 
 B)False

Question 2

Contributions to public charities in excess of 50% of AGI may be carried back three years or forward for up to five years.

Accepted Answer

A) True 
 B)False

Question 3

Mason, a physically handicapped individual, pays $10,000 this year for the installation of wheelchair ramps, support bars, and railings in his personal residence.These improvements increase the value of his personal residence by $2,000.Only $8,000 of the expenditure qualifies as a medical expense for tax purposes.

Accepted Answer

A) True 
 B)False

Question 4

The maximum child tax credit under current law is $1,500 per qualifying child.

Accepted Answer

A) True 
 B)False

Question 5

Points paid by the owner of a personal residence to refinance an existing mortgage must be capitalized and amortized over the life of the new mortgage.

Accepted Answer

A) True 
 B)False

Question 6

The additional Medicare taxes assessed on high-income individuals carry differing tax rates depending on the tax base.

Accepted Answer

A) True 
 B)False

Question 7

Phyllis, who is single, has itemized deductions totaling $20,000.She overpaid her 2018 state income tax and is entitled to a refund of $400 in 2019.Phyllis chooses to apply the $400 overpayment toward her state income taxes for 2019.She is required to recognize that amount as income in 2019.

Accepted Answer

A) True 
 B)False

Question 8

Tom, whose MAGI is $40,000, paid $3,500 of interest on a qualified student loan in 2019.He is single and may deduct the $3,500 interest as an itemized deduction.

Accepted Answer

A) True 
 B)False

Question 9

The exclusion of interest on educational savings bonds:

Accepted Answer

A)  Applies only to savings bonds owned by the child.
B)  Applies to parents who purchase bonds for which the proceeds are used for their child's education.
C)  Means that the child must include the interest in income if the bond is owned by the parent.
D)  Does apply even if used to pay for room and board.
E)  None of these.F) B) and D)
G) A) and D)

Exam 10: Individuals: Income, Deductions, and Credits

Correct Answer
verified

The election to itemize is appropriate when total itemized deductions are less than the standard deduction based on the taxpayer's filing status.

Correct Answer
verified

The exclusion of interest on educational savings bonds:

Correct Answer
verified

Contributions to public charities in excess of 50% of AGI may be carried back three years or forward for up to five years.

Correct Answer
verified

The maximum child tax credit under current law is $1,500 per qualifying child.

Correct Answer
verified

Points paid by the owner of a personal residence to refinance an existing mortgage must be capitalized and amortized over the life of the new mortgage.

Correct Answer
verified

The additional Medicare taxes assessed on high-income individuals carry differing tax rates depending on the tax base.

Correct Answer
verified

Phyllis, who is single, has itemized deductions totaling $20,000.She overpaid her 2018 state income tax and is entitled to a refund of $400 in 2019.Phyllis chooses to apply the $400 overpayment toward her state income taxes for 2019.She is required to recognize that amount as income in 2019.

Correct Answer
verified

Tom, whose MAGI is $40,000, paid $3,500 of interest on a qualified student loan in 2019.He is single and may deduct the $3,500 interest as an itemized deduction.

Correct Answer
verified

Exam 10: Individuals: Income, Deductions, and Credits

Correct AnswerverifiedShow Answer

The election to itemize is appropriate when total itemized deductions are less than the standard deduction based on the taxpayer's filing status.

Correct AnswerverifiedShow Answer

The exclusion of interest on educational savings bonds:

Correct AnswerverifiedShow Answer

Contributions to public charities in excess of 50% of AGI may be carried back three years or forward for up to five years.

Correct AnswerverifiedShow Answer

The maximum child tax credit under current law is $1,500 per qualifying child.

Correct AnswerverifiedShow Answer

Points paid by the owner of a personal residence to refinance an existing mortgage must be capitalized and amortized over the life of the new mortgage.

Correct AnswerverifiedShow Answer

The additional Medicare taxes assessed on high-income individuals carry differing tax rates depending on the tax base.

Correct AnswerverifiedShow Answer

Phyllis, who is single, has itemized deductions totaling $20,000.She overpaid her 2018 state income tax and is entitled to a refund of $400 in 2019.Phyllis chooses to apply the $400 overpayment toward her state income taxes for 2019.She is required to recognize that amount as income in 2019.

Correct AnswerverifiedShow Answer

Tom, whose MAGI is $40,000, paid $3,500 of interest on a qualified student loan in 2019.He is single and may deduct the $3,500 interest as an itemized deduction.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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