1/ during the current year, George, a salaried taxpayer, paid the following taxe
ID: 2483314 • Letter: 1
Question
1/ during the current year, George, a salaried taxpayer, paid the following taxes which were not incurred in connection with a trade or business: Federal income tax ( withheld by employer) $1500; state income tax ( withheld by employer) $ 1100; FICA tax (withheld by employer) $700; real property taxes $300; federal auto gasoline taxes $200; federal excise tax on telephone bills $50. what amount can George claim for the current year as an itemized deduction for the taxes paid, assuming he elects to deduct state and local income taxes? a. $1100 b. $1150 c. $1400 d. $2000 e. none of the above.
2/ roberto,age 50, has agi of $110000 for 2015. he has medical expenses of $13200. how much of the medical expenses can roberto deduct on his schedule A for 2015? a.0 b.4950 c.11000 d.13200 e.none of above
3/ steve goes to tri-state university and pays $40000 in tuition. steve works a part time job to pay for his schooling and has an agi of 17000. how much is his american opportunity tax credit? a. 2000 b. 2500 c. 4000 d. 1000 e. he does not qualify for the american opportunity tax credit.
Explanation / Answer
2. You may deduct only the amount of your total medical expenses that exceed 10% of your adjusted gross income or 7.5% if you or your spouse is 65 or older. The 7.5% limitation is effective only from January 1, 2013 to December 31, 2016 for individuals age 65 and older and their spouses.
Since the age of Mr. Roberto is less than 65 years, the maximum deduction he can take is 13200 - (110000*10%) =$2200.
you must use IRS Form 1040 to file your taxes and attach Schedule A.
hence answer is e. none of the above.
3. Generally, you can claim the American opportunity credit if all three of the following requirements are met.
You pay qualified education expenses of higher education.
You pay the education expenses for an eligible student.
The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return.
For 2015, you may be able to claim a credit of up to $2,500 for adjusted qualified education expenses paid for each student who qualifies for theAmerican opportunity credit.
Hence answer is b.2500
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