Examination Questions -45 Hour Federal Tax Law 204. Chlo e lived in Portland and

Question

Examination Questions -45 Hour Federal Tax Law 204. Chlo e lived in Portland and accepted a job in Atlanta. Under an accountable plan, her employer reimbursed her or her actual traveling expenses from Portland to Atlanta and the cost of moving her furniture to Atlanta. Chloe's employer included $3,200 on her Form W-2, box 12, with Code P, However, Chloe's allowable moving expenses were $3,900. What amount can she deduct as moving expenses on Form 3903 -Moving Expenses? 0 A. $0 $350 $700 $3,200 205. Generally, the amount a taxpayer may deduct for the Student Loan Interest Deduction is the lesser of what amount or the amount of interest he or she actually paid? A. $1,000 B. $1,500 C. $2,000 D. $2,500 206. Renee works at Indigo Inc. and attends school part-time as part of her company's educational assistance program. In 2016 her company reimbursed her a total of $6,250 for tuition, books, supplies, fees, etc. related to her schooling. How much of this amount can Renee exclude from her gross income? A. $0, this is a company sponsored benefit and does affect the individual's return B, $5,250, the maximum exclusion allowed under an employer's educational assistance program C. $5,750 the maximum exclusion allowed under an employer's educational assistance program D. $6,250 the maximum exclusion allowed under an employer's educational assistance program Lesson 1:3 207. Stan figured his adjusted gross income for 2016 was $40,000. He paid medical expenses of $2,500. What amount of his medical expenses can he deduct on his tax return? A. $0 B. $500 C. $1.500 D. $4,000 208. In 2016, Bill Jones drove 3,800 miles for medical reasons. He spent $500 for gas, $30 for oil, and $100 for tolls and parking. Using either actual expenses or standard mileage rate, what is the largest amount he can include for car expenses in his medical expenses on his tax return? A. $630 B. $658 C. $688 D. $822

Explanation / Answer

204.

Since out of moving expenses of $ 3900, $ 700 are paid by Chloe and remaining are paid by employer whihc are non taxable, Chloe would be eligible to take deduction of only $ 700. Correct answer would be Option C, $ 700

205.

As per Topic Number: 456 - Student Loan Interest Deuction (IRS), lesser of $2,500 or the amount of interest actually paid during the year can be claimed as deduction. Correct answer would be Option D, $ 2500

206.

Under Sec. 127, up to $5,250 of educational assistance can be excluded annually from an employee’s income under a program in which Renee is. Correct answer would be Option B, $ 5250

207.

Medical expense deduction = Expenses - 10% of Adjusted Gross Income

= $ 2500 - 10% of $ 4000 = $ 1500

Correct answer would be Option C, $1500

208.

Actual Expenses = $ 630

As per IRS, maximum car expenses can include, out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons.

Answer would be Option A

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.