Question :
31. Unreimbursed employee business expenses miscellaneous itemized deductions, subject to the : 1313544
31. Unreimbursed employee business expenses are miscellaneous itemized deductions, subject to the 2 percent of adjusted gross income limitation.
a. True
b. False
32. If an employee receives a reimbursement for employee business expenses, the amount of the reimbursement is always excluded from gross income and the expenses are deductible as deductions for adjusted gross income.
a. True
b. False
33. Itemized deductions are subject to a phase-out based on AGI for certain high-income taxpayers.
a. True
b. False
34. Jon, age 45, had adjusted gross income of $26,000 in 2014. During the year, he incurred and paid the following medical expenses:
Drugs and medicines prescribed by doctors$ 300
Health insurance premiums$ 750
Doctors’ fees$2,250
Eyeglasses$ 75
Jon received $900 in 2014 as a reimbursement for a portion of the doctors’ fees. If Jon were to itemize his deductions, what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?
a. $0
b. $425
c. $600
d. $1,000
e. None of the above
35. During 2014, Mary paid the following expenses:
Prescription drugs$490
Aspirin and over the counter cold capsules$130
Hospital and doctors$700
Health insurance$260
What is the total amount of medical expenses (before considering the limitation based on adjusted gross income) that would enter into the calculation of itemized deductions on Mary’s 2014 income tax return?
a. $700
b. $1,190
c. $1,450
d. $1,580
e. None of the above
36. In 2014, David, age 65, had adjusted gross income of $31,000. During the year he paid the following medical expenses:
Prescription medicines$ 200
Doctors$2,500
Medical care insurance$ 400
Crutches for a broken leg$ 100
What amount can David deduct as medical expenses (after the adjusted gross income limitation) in calculating his itemized deductions for 2014?
a. $0
b. $100
c. $875
d. $3,200
e. None of the above
37. Randy is advised by his physician to install an elevator in his residence, since he is afflicted with heart disease. The cost of installing the elevator is $10,000 and it has an estimated useful life of 10 years. He installs the elevator in January of 2014, and it increases the value of his residence by $8,000. Disregarding the limitation based on adjusted gross income, how much of the cost of the elevator may Randy take into account in determining his medical expense deduction for 2014?
a. $0
b. $750
c. $2,000
d. $10,000
e. None of the above
38. Which of the following is not deductible as a medical expense on Schedule A?
a. Payments to a nurse
b. Payments for marriage counseling
c. Payments for dentures
d. Payments for psychiatric care
e. All of the above are deductible as medical expenses
39. Which of the following is not considered a deductible medical expense?
a. A face lift
b. Eye exams
c. Prescription drugs
d. Medical insurance
40. Roberto, age 50, has AGI of $112,000 for 2014. He has medical expenses of $12,800. How much of the medical expenses can Roberto deduct on his Schedule A for 2014?
a. $0
b. $1,000
c. $1,280
d. $1,600
e. None of the above is correct
