Question

  Question 5

Sonya Landrum (17) is a dependent of her parents. She had wages of $1,525 and earned $185 in interest from her savings account. The maximum amount she may contribute to a traditional or Roth IRA for 2017 is __________.

	a)$0
	b)$1,525
	c)$1,710
	d)$5,500    Question 6 The expenses that qualify for an education credit in 2017 are __________. a)Tuition payments not offset by nontaxable scholarships, grants, or other benefits.   b)Fees for an optional student activity.   c)Costs for student health fees.   d)Tuition payments offset by nontaxable scholarships, grants, or other benefits. Question 7 Graduate-level classes taken at a local college qualify as a work-related expense if the classes __________. a) Are needed to meet the minimum educational requirements of the taxpayer's present trade.   b)Maintain or improve skills needed in the taxpayer's present work.   c)Qualify the taxpayer for a new trade or business.   d) Are taken during an absence from your job lasting up to 18 months.

Answer 1

Sonya Landrum (17) is a dependent of her parents. She had wages of $1,525 and earned $185 in interest from her savings account. The maximum amount she may contribute to a traditional or Roth IRA for 2017 is __________.

a)$0

b)$1,525

c)$1,710

d)$5,500

Dependents earning less than the annual limit can only contribute up to the amount of compensation and compensation includes earned income, such as salary or wages, but not money received as a gift or investment income

Question 6

The expenses that qualify for an education credit in 2017 are __________.

a)Tuition payments not offset by nontaxable scholarships, grants, or other benefits.

b)Fees for an optional student activity.

c)Costs for student health fees.

d)Tuition payments offset by nontaxable scholarships, grants, or other benefits.

The student paid for tuition will be deducted from the amounts of scholarships and grants received would be her maximum qualifying expenses for the education credit

Question 7

Graduate-level classes taken at a local college qualify as a work-related expense if the classes __________.

a)

Are needed to meet the minimum educational requirements of the taxpayer's present trade.

b)Maintain or improve skills needed in the taxpayer's present work.

c)Qualify the taxpayer for a new trade or business.

d)

Are taken during an absence from your job lasting up to 18 months.

To deduct work-related education expenses paid during the year as an itemized deduction expenses must be for maintaining or improving the job skills