Question

Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Clem's expenses that are deductible for AGI this year (if any) under the following independent circumstances: (Leave no answer blank. Enter zero if applicable.)   

a. Clem is self-employed, and this year he incurred $525 in expenses for tools and supplies related to his job. Because neither was covered by a qualified health plan, Wanda paid health insurance premiums of $3,600 to provide coverage for herself and Clem (not through an exchange).

Answer 1

Solution:

Deductible amount for AGI

$ 4,125

Explanation:

	Amount	Explanation
Expenses for tools and supplies	$ 525	Clem is a carpenter by profession. So. His expense for tools and supplies are deductible expense
Health Insurance Premium	$ 3,600	Wanda paid premium and there are not covered under qualified health plan.So, Premium is deductible
Deductible amount for AGI	$ 4,125