Question 1
During the year Jason and Kristi, cash basis taxpayers, paid the following taxes:
What amount can Kristi and Jason claim as an itemized deduction for taxes on their federal income tax return in the current year?
◦ $7,900
◦ $8,900
◦ $10,900
◦ $15,400
Question 2
Hui pays self-employment tax on her sole proprietorship income, supplemental Medicare surtaxes on excess wages and self-employment income (the .09% tax) and supplemental Medicare taxes on investment income (the 3.8% tax). Which of the following statements is correct regarding the deductibility of these taxes?
◦ All three of the taxes are deductible as itemized deductions.
◦ One-half of the self-employment tax is deductible for AGI, and the .09% and 3.8% taxes are itemized deductions.
◦ None of the taxes are allowed as a deduction.
◦ One-half of the self-employment tax is deductible for AGI, but the .09% and 3.8% taxes are not allowed as deductions.
The Head Start program was designed to increase the school readiness of low-income children.
Sample Medicare identification card.
Sources of income for U.S. population aged 65 and over.
Income Inequality in the United States: 1947–2009
Lemon Sole
Petrale Sole