Question

duash depona expire aer 2025 QUESTIONS and PROBLEMS MULTIPLE CHOICE QUESTIONS L othe r chances scheduled to explore Sun of Restrictions on the destruction of casualty and theft losses Congo tax forms are used by individuals in 2019 the w LO 1.1 SR ported on income is The Room 1000 c. For 100 Ons which of these would wage income be reported Schedule 1 Schedule 2 Schedule Form 1000 5. Which of the following is a deduction for adjusted gross income in 20199 Personal casualty losses Medical expenses Student loan interest d. Charitable contributions e. None of the above 6. All of the following are itemized deductions in 2019 cept: a. Charitable contributions Alimony payments c. State and local taxes d Medical expenses c. All of the above are itemized deductions LO 1.3

Answer 1

Answer:

1. As per the recent tax changes the following which are related to an individual are scheduled to expire after 2025

1. Suspension of personal exemptions
2. General lowering of individual tax rates
3. Restrictions on the deduction of casualty and theft losses

Hence, d) reduction of corporate tax rates to 21 percent is not scheduled to expire after 2025

2. The following are the tax forms not used by individuals in 2019

1. 1040A
2. 1040-EZ

4. Tax form 1120 is used for U.S. Corporation Income Tax Return

Hence, c) 1040-SR is the tax form used by individuals in 2019

3. The details of use of the forms is given below

1. Form 1040 – Tax form used by individuals
2. Form 1120 – Tax form used for U.S. Corporation Income Tax Return
3. Form 1040X – Tax form used by individuals for making any corrections to above Form 1040
4. Form 1065 – Tax form used for reporting partnership income

Hence, d) Form 1065 is used for reporting partnership income

4. Please note the following

1. Schedule 1 – For reporting income other than wages, interest, dividends etc.
2. Schedule 2 – For reporting other income but not related to wages, interest, dividends etc.
3. Schedule 3 – For claiming tax credits which are nonrefundable in nature.
4. Form 1040 – Tax form used by individuals

Hence, d) Form 1040 is used for reporting wage income

5. Please note that the following are not considered for deduction for adjusted gross income in 2019
   a) Personal casualty losses
   b) Medical expenses
   d) Charitable contributions

Hence, c) Student loan interest is to be considered as a deduction for adjusted gross income in 2019

6. Please note that the following are itemized deductions in 2019
   a) Charitable contributions
   c) State and local taxes
   d) Medical expenses

Hence, b) Alimony payments is not an itemized deduction in 2019.