Kyle is married and a self employed landscaper during

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94. Kyle is married and a self-employed landscaper. During the current year, Kyle pays $3,000 for health insurance coverage for himself. He pays another $400 for coverage for his employee, Tabatha. How should Kyle deduct the health insurance cost? I. Kyle deducts a total of $3,400 for AGI. II. Kyle cannot deduct any portion of his premium of $3,000 for AGI if his spouse is covered by a h a. Only statement I is correct. b. Only statement II is correct. c. Both statements are correct. d. Neither statement is correct.
ANSWER: 95. Oliver owns Wifit, an unincorporated sports store. In 2015 Wifit earned $100,000, before Oliver drew out a salary of $60,000. What is Oliver’s 2015 deduction for self-employment taxes?
ANSWER: 96. Concerning individual retirement accounts (IRAs), I. A single taxpayer that is not an active participant in a qualified plan may deduct up to $6,000 of II. A taxpayer that is not working outside of the home may not deduct any amount if their spouse is below $61,000.
ANSWER: 97. Rhonda and Ralph are married. Rhonda earns $81,000 annually, and Ralph earns $6,000 annually working part-time. Their AGI is $108,000. Rhonda participates in an employer-sponsored retirement plan. Ralph’s company does not have a pension plan. Rhonda and Ralph contribute the maximum amount allowable annually to their IRAs. What is their allowable
deduction for this year’s contributions?
ANSWER: 98. Chi is single and an employee of Federal Company. Chi’s adjusted gross income for the current year is $63,000. Chi would like to make the maximum contribution to his individual retirement account this year. Which of the following statements about Chi’s contribution and deduction amounts is (are) true? I. He is not allowed to make an IRA contribution because his adjusted gross income is greater than II. If Federal Company does not have a qualified pension plan; Chi can contribute and deduct a max a. Only statement I is correct. b. Only statement II is correct. c. Both statements are correct. d. Neither statement is correct.
ANSWER: 99. Chelsea is an employee of Avondale Company. Chelsea’s adjusted gross income for the current year is $65,000. Chelsea would like to make the maximum contribution to her individual retirement account this year. Which of the following statements about Chelsea’s contribution and deduction amounts is (are) true?

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