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2013-05-29 00:22:16
Above line deductions

The explanation of above the line deductions one can take to arrive at AGI
Show Answers:

  1. Who are eligible educators for claiming educator expenses?
    Eligible educators include  Kingergarten - 12th Grade teachers, instructors, counselors, principals or aides that have taught at least 900 hours per school year.
  2. What is the annual limit for unreimbursed expenses spent for books and supplies used in the classroom?
    The annual limit is $250.00 per qualified educator on a joint return.
  3. Can contributions to a Health Savings Account be deducted after the end of the tax year?
    Contributions can be deducted on the same tax year if they are made before the filing deadline of the following year.
  4. What are the maximum amounts that can be contributed to a Health Savings Account each year with respect to coverage and age?
    For self-only coverage the taxpayer or his/her employer can contribute $3,100 ($4,100 for taxpayers aged 55-64)

    For family coverage, the taxpayer or his/her can contribute up to $6,250 ($7,250 for taxpayers aged 55-64)
  5. What are the two tests that must be met in order to qualify direct moving expenses?
    The two tests that must be met in order to qualify direct moving expenses are:

    The distance test is met when the new place of work is at least 50 miles away from the prior principal place of work

    The time test is met when the taxpayer spends at least 39 weeks at the new job during the 12-month period that begins on the day of the move.  For self-employed persons it is at least 78 weeks for the 24-mont perios that begins during the period of the move.
  6. Jeremy's employer moved locations from Silver City, New Mexico to Los Angeles California.  Jeremy drove exactly 844 miles and stopped at a Motel 6 for one night, which cost him $60.00.  Using the standard mileage rate for moving expenses, What is Jeremy's total allowable moving expense deduction? (Round to the nearest integer)

    • The correct answer is (B) $254.00:
    • (844) x (.23 standard mileage rate) + 60 = $254.00
  7. Which of the following is not a deductible moving expense?

    A. Storage for furniture
    B. Shipping costs for personal items.
    C. Cost of meals during the trip.
    D. Cost of hotels on the way to the location
    The answer is (C) cost of meals during the trip is not deductible as a direct moving expense.
  8. What is the percentage amount that a self-employed person can deduct from their self-employment tax?
    The deduction that a self-employed person can take on their self-employment taxes is 57.51%.