Question

46.	Which one of the following is a miscellaneous itemized deduction?

A. Qualified mortgage insurance premium.
B. Casual gambling losses to the extent of gambling winnings.
C. State income taxes.

47.	Some or all of the interest incurred on a qualified education loan may be:

A. Deductible in computing AGI.
B. Deductible as a miscellaneous itemized deduction.
C. Never deductible.

48.	The Browns borrowed $30,000, secured by their home, to pay their son’s college tuition. At the time of the loan, the fair market value of their home was $400,000, and it was unencumbered by other debt. The interest on the loan is treated for itemized deductions as:

A. Deductible business interest.
B. Non-deductible home equity (mortgage) interest.
C. Deductible home equity (mortgage) interest.

49.	Additional Medicare Tax on earned income is calculated on which Form?

A. Form 8959.
B. Form 8960.
C. Schedule AMT.

50.	Which of the following statements is CORRECT regarding Additional Medicare Tax on earned income?

A. There is no employer withholding requirement for the Additional Medicare Tax on earned income.
B. Employers must withhold the tax if the employee is married and wages exceed $200,000.
C. Employers must withhold the tax if the employee is married and wages exceed $250,000.

Answer 1

46) Answer is B. State income tax is not a miscellaneous itemized deduction.

47) Answer is A. One does not have to itemize deductions in order to claim it.

48) Answer is A. Interest on student loan can be deducted from AGI or deduction under itemized deduction to the limit of $2500.

49) Answer is A.

50) Answer is B.