h of the following statements is inapplicable to qualified tuition programs? Up to $10,000 per year may be used for elementary or secondary school tuition. There is no income limit for contributors. Funds may be used for room and board of a student enrolled at least half-time. Accounts must be set up with the beneficiary's state of residence.

h of the following statements is inapplicable to qualified tuition programs? Up to $10,000 per year may be used for elementary or secondary school tuition. There is no income limit for contributors. Funds may be used for room and board of a student enrolled at least half-time. Accounts must be set up with the beneficiary's state of residence.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter9: Deductions: Employee And Self- Employed-related Expenses

Section: Chapter Questions

Problem 36P

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Linda is an employee of JRH Corporation. Which of the following would be included in Lindas gross income? a. Premiums paid by JRH Corporation for a group term life insurance policy for 50,000 of coverage for Linda. b. 1,000 of tuition paid by JRH Corporation to State University for Lindas masters degree program. c. A 2,000 trip given to Linda by JRH Corporation for meeting sales goals. d. 1,200 paid by JRH Corporation for an annual parking pass for Linda.
Which of the following statements does not apply to Coverdell education savings accounts? Group of answer choices A. Contributions up to $2,000 per child can be made each year B. Contributions must be for a beneficiary under the age of 18 C. When the beneficiary reaches age 30, unused amounts are distributed to the parent who is taxed on any accumulated earnings. D. Qualifying educational expenses include tuition, books, supplies, and room and board E. All of the above.
Which of the following statements regarding a Coverdell Education Savings Account (CESA) is incorrect? Multiple Choice In order to be tax-free, distributions must be used exclusively to pay the qualified education expenses of the beneficiary. Any person can contribute to a CESA, even if he or she is not related to the beneficiary. Contributions to a CESA are not tax-deductible. A person can contribute to only one CESA during each tax year.
Which of the following statements regarding a Coverdell Education Savings Account (CESA) is correct? Multiple Choice For single taxpayers, permitted contributions begin to be phased out when AGI reaches $90,000. An individual can be the beneficiary of multiple CESAs. A contributor cannot make a contribution for himself/herself. Annual contributions are limited to $2,000 per beneficiary, per contributor.
Shellie, a single individual, received her Bachelor's degree in 2020, and took a job with a salary of $45,000 per year. In 2021, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct? a.If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest. b.Taxpayers are not allowed a deduction for education loan interest in 2021. c.If her income had been $65,000, the deductible amount would have been phased out. d.The full $1,500 is deductible in arriving at adjusted gross income (AGI).
A taxpayer will need to file Schedule A, Itemized Deductions, to deduct which of the following? An amount contributed to a traditional IRA. State and local income tax withheld from the taxpayer's regular pay. Student loan interest paid on a qualified student loan. Unreimbursed business expenses incurred by an eligible educator, including amounts paid for classroom supplies, books, and computer equipment.
Which of the following statements is true regarding education tax credits? Group of answer choices The American Opportunity credit permits a maximum credit of 20% of qualified expenses up to $10,000 per year. The lifetime learning credit is available for qualifying tuition and related expenses incurred by students pursuing only graduate degrees. The American Opportunities Credit is only available for the first four-years of higher education. The American Opportunity Credit is calculated per return, while the lifetime learning credit is available per eligible student.
With respect to a Qualified Tuition Plan, which of the following statements is incorrect? Multiple Choice Qualified expenses for room and board can be withdrawn from a QTP and qualified expenses for tuition can be used to claim an American Opportunity Credit. Similar to an IRA, contributions to a QTP are deductible on a federal tax return. A QTP can be rolled over to a QTP of another family member. Room and board is a qualified expense if the beneficiary is attending at least half-time.
28. In 2020, Amy receives $8,000 (of which $3,000 is earnings) from a qualified tuition program. She uses the funds to pay for tuition and other qualified higher education expenses. What amount is taxable to Amy? $0 $8,000 $3,000 $11,000 30. Which of the following is true with respect to education incentives? The contributions to qualified tuition programs (Section 529 plans) are deductible. The contributions to educational savings accounts (Coverdell ESA) are deductible. Tuition paid by a taxpayer earning $300,000 of income is deductible. Married taxpayers have no income limit to contribute to a qualified tuition program (Section 529 plan).
In 2019, Jose paid the following amounts for his son to attend Big State University: Tuition $9,000 Room and board 6,300 Books 900 A car to use at school 4,950 Student football tickets 285 Spending money 4,960 How much of the above is a qualified higher education expense for purposes of his Qualified Tuition Program?
Leaf Private College is sponsored by a religious group. Volunteers from this religious group regularly contribute their skilled services to Leaf and are paid nominal amounts to cover their commuting costs. If Leaf did not receive these volunteer services, it would have to purchase similar services. During 2019, the total amount paid to these volunteers was $10,000. The gross value of services performed by them, as determined by reference to layequivalent salaries, amounted to $400,000. What amount should Leaf record as expenses in 2019 for these volunteers’ services?a. $410,000b. $400,000c. $10,000d. $0
In 2023, Elaine paid $2,960 of tuition and $1,040 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? Note: Leave no answer blank. Enter zero if applicable. Problem 8-72 Part a (Algo) a. Elaine's AGI is $103,250.