Question

7. Check all the items that can possibly be taken as a FOR AGI Adjustment:

		Casualty
		Educator Expenses
		Self-employment taxes
		Medical Expenses
		Business Expenses
		Real-Estate Taxes on Residence
		Tuition paid for your degree at EKU

8. Check all the items that can possibly be taken as a FOR AGI adjustment:

		Student Loan Interest Paid
		State Income Taxes Paid
		Moving Expenses
		Health Savings Account Contributions
		Personal Property taxes paid
		Early Withdraw from Savings Penalty
		Charitable Contributions

10. Which of the following is a true statement?

		The deduction of educational expense for a dependent is claimed as an itemized deduction.
		The deduction for the employer portion of self employment taxes is subject to a phase-out limitation.
		The deduction for interest on educational loans is subject to a phase-out limitation.
		Taxpayers are allowed to deduct reasonable moving expenses if the expenses are not reimbursed by their employers.
		All of the choices are false.

11. Deductible medical expenses generally include payments for nonprescription (over the counter) medicine.

Yes

No

Answer 1

7.

Educator Expenses-If you're an eligible educator, you can deduct up to $250 ($500 if married filing jointly and both spouses are eligible educators, but not more than $250 each) of unreimbursed trade or business expenses.

Self Employment Taxes- Only half of Self Employment Taxes can be taken for adjustment.

Medical Expenses-IRS allows all taxpayers to deduct the total qualified unreimbursed medical care expenses for the year that exceeds 7.5% of their adjusted gross income.

Business Expenses-Expenses of carrying on a trade or business including most rental activities (other than as an employee) and certain business expenses of teachers, reservists, performing artists, and fee-basis government officials, can be adjusted.

Real-Estate Taxes on Residence-Your adjusted gross income is not affected by the property tax deduction or the mortgage interest deduction.

Tuition paid for your degree at EKU-School tuition, fees, and student loan interest can be adjusted with exceptions and limits.

8.

Student Loan Interest Paid- Student loan interest can be adjusted with limitations and exceptions.

State Income Taxes Paid- it cannot be considered as an adjustment.

Moving Expenses-Moving expenses can be adjusted but since 2018, only if you're active-duty military moving are due to military orders.

Health Savings Account Contributions- Healthcare savings account (HSA) deductions can be adjusted.

Personal Property taxes paid-If you end up paying personal property taxes to your local government, the IRS allows you to claim a deduction for it on your federal tax return. However, the IRS requires you to satisfy certain requirements, regardless of how your government classifies the tax.

Early Withdraw from Savings Penalty-Early-withdrawal penalties levied by financial institutions can be adjusted.

Charitable Contributions-There is a limit to the amount of all charitable contributions allowed during a tax year. Your total charitable deductions are generally limited to no more than 60% of your adjusted gross income (AGI).

10. The deduction for interest on educational loans is subject to a phase-out limitation. is a true statement.

Filing Status	Phase-out Begins	Phase-out Ends
Married Filing Jointly	$140,000	$170,000
Qualifying Widow(er)	$70,000	$85,000
Head of Household	$70,000	$85,000
Single	$70,000	$85,000

Taxpayers are allowed to deduct reasonable moving expenses if the expenses are not reimbursed by their employers is a true statement.

If you moved to a new location because of work, you may qualify to use IRS Form 3903 to claim the cost of your moving expenses as a deduction on your federal income tax return.

For tax years prior to 2018, the IRS allows taxpayers to deduct eligible moving costs from the taxable income they report on Form 1040.

This deduction is not subject to any limits, so you can claim all of your qualified moving costs if you meet the eligibility requirements. While moving expenses you pay yourself are deductible, expenses that your employer reimburses you for are not eligible for the deduction.

The deduction for the employer portion of self employment taxes is subject to a phase-out limitation is not a true statement.

The deduction of educational expense for a dependent is claimed as an itemized deduction is a false statement.

Unlike most other types of deductions, the student loan interest deduction is claimed as an adjustment to income on Internal Revenue Service (IRS) Form 1040. You don't have to itemize deductions on Schedule A in order to claim it.

To qualify for a deduction, the student loan must have been taken out for either the taxpayer, their spouse, or their dependent(s). If the student is the legally obligated borrower, a parent who helps with repayment cannot claim the deduction.

11. NO

over-the-counter (OTC) medicines are not deductible.OTC equipment and supplies can be deductible.