1. Personal expenditures that are deductible as itemized deductions include medical expenses, Federal income taxes, state income taxes, property taxes on a personal residence, mortgage interest, and charitable contributions.
a. True
b. False
2. The election to itemize is appropriate when total itemized deductions are less than the standard deduction based on the taxpayers filing status.
a. True
b. False
3. Adrienne sustained serious facial injuries in a motorcycle accident. To restore her physical appearance, Adrienne had cosmetic surgery. She cannot deduct the cost of this procedure as a medical expense.
a. True
b. False
4. A physician recommends a private school for Ellens dependent child. Because of the physicians recommendation, the cost of the private school will qualify as a medical expense deduction (subject to percentage limitations).
a. True
b. False
5. Mindy paid an appraiser to determine how much a capital improvement made for medical reasons increased the value of her personal residence. The appraisal fee qualifies as a deductible medical expense.
a. True
b. False
6. Upon the recommendation of a physician, Ed has a swimming pool installed at his residence because of a heart condition. If he is allowed to deduct all or part of the cost of the pool, Eds increase in utility bills due to the operation of the pool qualifies as a medical expense.
a. True
b. False
.
7. Mason, age 70, a physically handicapped individual, pays $10,000 in 2014 for the installation of wheelchair ramps, support bars, and railings in his personal residence. These improvements increase the value of his personal residence by $2,000. Only $8,000 of the expenditure qualifies as a medical deduction (subject to the AGI floor).
a. True
b. False
8. Chad pays the medical expenses of his son, James. James would qualify as Chads dependent except that he earns $7,500 during the year. Chad may claim James medical expenses even if he is not a dependent.
a. True
b. False
9. Bill paid $2,500 of medical expenses for his daughter, Marie. Marie is married to John and they file a joint return. Bill caninclude the $2,500 of expenses when calculating his medical expense deduction.
a. True
b. False
10.In 2014, Dena traveled 600 miles for specialized medical treatment that was not available in her hometown. She paid $90 for meals during the trip, $145 for a hotel room on Tuesday night, and $15 in parking fees. She did not keep records of other out-of-pocket costs for transportation. Dena can include $206 in computing her medical expenses.
a. True
b. False
11.Maria traveled to Rochester, Minnesota, with her son, who had surgery at the Mayo Clinic. Her son stayed at the clinic for the duration of his treatment. She paid airfare of $300 and $50 per night for lodging. The cost of Marias airfare and lodging cannotbe included in determining her medical expense deduction.
a. True
b. False
12.In 2014, Brandon, age 72, paid $3,000 for long-term care insurance premiums. He may include the $3,000 in computing his medical expense deduction for the year.
a. True
b. False
13.Jims employer pays half of the premiums on a group medical insurance plan covering all employees, and employees pay the other half. Jim can exclude the half of the premium paid by his employer from his gross income and may include the half he pays in determining his medical expense deduction.
a. True
b. False
14.Matt, a calendar year taxpayer, pays $11,000 in medical expenses in 2014. He expects $5,000 of these expenses to be reimbursed by an insurance company in 2015. In determining his medical expense deduction for 2014, Matt must reduce his 2014 medical expenses by the amount of the reimbursement he expects in 2015.
a. True
b. False
15.In 2015, Rhonda received an insurance reimbursement for medical expenses incurred in 2014. She is notrequired to include the reimbursement in gross income in 2015 if she claimed the standard deduction in 2014.
a. True
b. False
16.Georgia contributed $2,000 to a qualifying Health Savings Account in 2014. The entire amount qualifies as an expense deductible forAGI.
a. True
b. False
17.Shirley pays FICA (employers share) on the wages she pays her maid to clean and maintain Shirleys personal residence. The FICA payment is notdeductible as an itemized deduction.
a. True
b. False
18.Fees for automobile inspections, automobile titles and registration, bridge and highway tolls, parking meter deposits, and postage are not deductible if incurred for personal reasons, but they are deductible as deductions forAGI if incurred as a business expense by a self-employed taxpayer.
a. True
b. False
