1. Which of the following is true about the self-employed health insurance deduction? a.The cost of insurance for dependent children is not allowed. b.Long-term care insurance is allowed as a deduction, subject to a dollar limitation. c.Life insurance is allowed as a deduction. d.Medical insurance is allowed as a deduction, subject to a dollar limitation. e.Dental insurance is not part of the allowable deduction.
1. Which of the following is true about the self-employed health insurance deduction? a.The cost of insurance for dependent children is not allowed. b.Long-term care insurance is allowed as a deduction, subject to a dollar limitation. c.Life insurance is allowed as a deduction. d.Medical insurance is allowed as a deduction, subject to a dollar limitation. e.Dental insurance is not part of the allowable deduction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Which of the following is true about the self-employed health insurance deduction?
a.The cost of insurance for dependent children is not allowed.
b.Long-term care insurance is allowed as a deduction, subject to a dollar limitation.
c.Life insurance is allowed as a deduction.
d.Medical insurance is allowed as a deduction, subject to a dollar limitation.
e.Dental insurance is not part of the allowable deduction.
2. Jody is a physician's assistant (not covered by a retirement plan) with a salary of $40,000 from the hospital where she is employed. She supports her husband, Andre, who sells art work and has no earned income. They have no other sources of income. Both are in their twenties. What is the maximum total amount that Jody and Andre may contribute to their traditional IRAs and deduct for the 2021 tax year?
a.$12,000
b.$6,000
c.$5,500
d.$11,000
e.None of these choices are correct.
3. Gail is a single elementary school teacher. She buys the following items for use in her classroom in 2021:
What amount can Gail deduct either as a for or from AGI deduction in 2021?
| Construction paper and tissues | $45 |
| Materials for decorating the classroom bulletin boards | $200 |
| Artist's smock used for in-class finger painting | $30 |
| 12 Dozen erasers | $15 |
What amount can Gail deduct either as a for or from AGI deduction in 2021?
a.$250 as a for AGI deduction and $40 as a from AGI deduction
b.$290 as a for AGI deduction and $0 as a from AGI deduction
c.$250 as a for AGI deduction and $30 as a from AGI deduction (subject to 2% of AGI)
d.$250 as a for AGI deduction and $0 as a from AGI deduction
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