Agi self employed Study guides, Class notes & Summaries

T/F 1. Expenditures for a weight reduction program are deductible if recommended by a physician to treat a specific medical condition such as hypertension caused by excess weight. - ANSWER t T/F Cosmetic surgery is not deductible unless such surgery is necessary to correct a deformity arising from a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease. - ANSWER true T/F 3. Expenditures incurred in removing structural barriers in t...

1040A - Answer a two-page form, your income must be less than $100,000 and be derived only from specified sources. using this form, you may deduct certain IRA contributions and claim certain tax credits, but you cannot itemize your deductions. 1040EZ - Answer simple, one-page form; you qualify to use this form if you are single r married filing jointly; under age 65; not blind; do not claim any dependents; have taxable income of less than $100,000 from only wages, salaries, tips, or taxab...

It has been suggested that tax policy favors deductions for AGI compared to itemized deductions. Describe two ways in which deductions for AGI are treated more favorably than itemized deductions. - Correct Answer Itemized deductions must exceed the standard deduction before taxpayers receive any tax benefit from the deductions (this is equivalent to an overall floor limit). In contrast, business deductions that are deductible for AGI (above the line) reduce taxable income without being subject t...

Wage - Compensation, usually financial, received by workers in exchange for their work. Adjusted gross income (AGI) - Equals gross income, less reductions that are allowable, regardless of whether personal deductions are itemized. Credits - Reductions of tax liablility allowed for various purposes to tax payers who meet the qualifications. Some are refundable some are non-refundable. Some credits may be carried to different years. Refundable credits - Credits where the IRS w...

Why is it important to distinguish whether an individual is an employee or an independent contractor (self-employed)? – ANSWER A. Self-employed individuals receive an income tax deduction equal to 50% of their self-employment tax. Consideration should also be given to the hospital insurance portion of the FICA tax, which continues to apply without limit at a 1.45% rate for both employees and employers and at a 2.9% rate for self-employed individuals. B. It is important to distinguish ...

WebCE Practice Exams Questions and Answers 2023 Which medical plan covers doctor visits while the insured is in the hospital and physical therapy treatments following release from the hospital? limited medical policy basic hospital expense policy comprehensive major medical insurance supplementary major medical insurance comprehensive major medical insurance A comprehensive major medical plan covers hospital expenses and doctor and surgeon fees. A basic hospital expense policy covers ...

H&R Block Income Tax Course QUESTIONS AND ANSWERS ALL VERIFIED H&R Block Income Tax Course Circular 230 - ANS Regulations governing the practice of attorneys, certified public accountants, enrolled agents, enrolled actuaries, and appraisers before the IRS. Disclosure - ANS The release of tax information by an IRS employee. Due Diligence - ANS Requirements that tax professionals must follow when preparing income tax returns. Noncompliance - ANS Failure or refusal to co...

qualified dividend income - ANS Income not considered ordinary income NOT accurate regarding the deduction for qualified education loan interest - ANS The full amount of interest paid on qualified educational loans is deductible. False - ANS Taxpayers may deduct both state and local income taxes and state and local sales taxes as itemized deductions. common medical expenses - ANS For mortgages obtained after 2017, MFJ homeowners may deduct interes...

Comprehensive Module 2 Final Exam Part 1 2021 complete exam solution Copyright © 2021, The Income Tax School, Inc. – All Rights Reserved FE - 1 Comprehensive Module 2: Final Exam 1. Don is a single parent. His son is 19 (not a student), and his daughter is 17 (still a student). Don claimed EIC on his tax return for both children. He later received a letter from the Internal Revenue Service which disallowed EIC for his son. The letter also stated that Don’s claim was an error due to r...

Test Bank for McGraw-Hill's Taxation of Business Entities 2023 Edition 14th Edition by Brian Spilker, Benjamin Ayers, John Barrick Troy Lewis John Robinson 3) Bryon operates a consulting business and he usually works alone. However, during the summer Bryon will sometimes hire undergraduate students to collect data for his projects. This past summer Bryon hired Fred, the son of a prominent businessman, for a part-time summer job. The summer job usually pays about $17,000, but Bryon p...