5. Jean frequents the casinos in Reno. She brings in a W-2G with gambling winnin

Question

5. Jean frequents the casinos in Reno. She brings in a W-2G with gambling winnings of $2500. She also has a log with documented losses of $5200 for the year. How does Jean report this information? Jean is itemizing her deductions.

a. Jean has a net loss and reports that in the “Other Miscellaneous Deductions” section of Schedule A.

b. Jean has no net income from gambling therefore she does not have to report anything on her return.

c. Jean reports the winnings on Form 1040 line 21 and the losses, only up to the amount of the winnings on Schedule A in the "Other Miscelanneous Deductions" section of schdule A.

d. Jean reports the winnings on Form 1040, Line 21 and all of her losses in the “Other Miscellaneous Deductions” section of Schedule A.

6. Juan received a Form 1098, Mortgage Interest statement from his bank. Juan’s mortgage is for $50,000 and is on the home he lives in, which he purchased 2 years ago. It has the following items listed “mortgage interest received from payor” and “property taxes paid.” Where would these amounts be entered onto his tax forms, assuming he will be itemizing his deductions?      

These are not items that are used in calculating Juan’s taxes, and would not be entered anywhere.
Mortgage interest would be added into interest amounts on Schedule B (Line 8 of the 1040), and property taxes entered on Schedule A under “Taxes You Paid”

c. Mortgage interest would be added into interest amounts on Schedule A under "Interest You Paid" and property taxes entered on Schedule A under "Taxes You Paid"

d. Mortgage interest would be added into interest amounts on Schedule A under “Interest You Paid”, and property taxes are not placed anywhere.

7.A taxpayer comes in with the following list of charitable contributions he wants to deduct on Schedule A. He has receipts for everything given except to his friend who was evicted.

$150 donation to the Catholic Church

$100 to a candidate for city mayor

$16 for raffle tickets at a church social

$30 for a Boy Scout pancake breakfast; the receipt notes that the breakfast was worth $10

$25 to a friend who was evicted from his home

$20 to the local high school choir

How much can this taxpayer list for his deduction?      

a. $341      

b. $316      

c. $216      

d. $190

Explanation / Answer

5)Option D

6)option c

7)150+16+30+20=$216

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