36. Is this statement correct concerning above the line and below the line deductions for tax year 2023. A. Self-employed health insurance is considered a above the line deduction. B. An above the line deduction is an adjustment for adjusted gross income C. in 2023 a portrait of charitable contributions may be an above the line deduction.

36. Is this statement correct concerning above the line and below the line deductions for tax year 2023. A. Self-employed health insurance is considered a above the line deduction. B. An above the line deduction is an adjustment for adjusted gross income C. in 2023 a portrait of charitable contributions may be an above the line deduction.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter1: The Individual Income Tax Return

Section: Chapter Questions

Problem 6MCQ

See similar textbooks

Similar questions

Which of the following is a deduction for adjusted gross income in 2019? Personal casualty losses Medical expenses Student loan interest Charitable contributions None of the above
In 2019, what is the top tax rate for individual long-term capital gains and the top tax rate for long-term capital gains of collectible items assuming that the Medicare tax does not apply. 10; 20 20; 28 15; 25 25; 28
9
1. Which of the following must be included in the gross income of the recipient in 2021? a.Unemployment compensation b.Child support payments c.Welfare payments d.Gifts e.All of these choices are included in gross income. 2. All of the following must be included in gross income, except: a.Gambling winnings b.Jury duty fees c.Dividends d.Gifts e.Partnership income 3. All of the following amounts are excluded from gross income, except: a.Gifts b.Veterans' benefits c.Tips and gratuities d.Child support payments e.Scholarship grants for tuition
29. Is the tax treatment in this scenario accurate for tax year 2023. A. The taxpayer received repayment of a loaned money from a friend in this tax year this should be reported as miscellaneous income.
14. Is the following statement correct regarding exclusions or deductions. A. an HSA contribution is a deduction from federal gross income. B. Federal tax deductions and exclusion from federal income taxes are the same thing. C. The taxpayer can exclude the amount paid for their individual life insurance premium. D. Qualified charitable contributions are allowable as an itemized deduction on the schedule A form
Which of the following is true regarding Social Security benefits? a. Tax-exempt interest income must be included in the formula used to determine if Social Security is included in taxable income. b. Up to 100 percent of Social Security benefits received may be included in taxable income. c. The Social Security inclusion formula is the same amount for each filing status. d. Social Security benefits are always excluded because wages are subject to Social Security tax when earned.
Which one of the statement regarding itemized deductions in 2020 is false? Group of answer choices A.Itemized deductions provide relief to taxpayers whose ability to pay taxes has been involuntarily reduced. B.Itemized deductions subsidize desirable activities. C.Itemized deductions include medical expenses, taxes, mortgage interest, charitable contributions, and unreimbursed employee business expenses. D.Taxpayers only itemize deductions if they exceed their standard deduction.
Which of the following is true regarding Social Security benefits? a.Up to 100 percent of Social Security benefits received may be included in taxable income. b.Social Security benefits are always excluded because wages are subject to Social Security tax when earned. c.The Social Security inclusion formula is the same amount for each filing status. d.Tax-exempt interest income must be included in the formula used to determine if Social Security is included in taxable income.
What are some common examples of income, and what are some common examples of items excluded from income? For example, included items would be income such as alimony received from pre-2019 divorces, gambling winnings, wages, unemployment compensation, etc. and excluded items would be income such as life insurance proceeds, child support payments, medical reimbursements to cover medical expenses, municipal bond interest income, scholarships for tuition and books, inheritances, and gifts, group term life insurance premiums paid by an employer for a policy under $50,000, employee discounts, certain public transportation costs paid for by an employer, veterans’ benefits, etc.
What are the 2019 tax rates for FICA Social Security and FICA Medicare? What are the 2019 maximum taxable earnings amounts for each of these taxes?
1.