Professor Terrence, from the English department at BMCC, incurred $350 dollars in educational expenses during 2019. He purchased supplies that were used by his students during the academic year. Please advice Prof. Terrence if his educational expenses qualifies as a deduction for Adjusted Gross Income (AGI)? Guiding Hints/Questions: who qualifies for educational expenses deductions? what is the limitations, if any?
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- Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total of 11,965 miles during 2019, of which 80 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $6,440. Teresa is eligible to use the actual or standard method. How much is Teresa's transportation deduction based on the standard mileage method? $______________ How much is Teresa's transportation deduction based on the actual cost method? $______________ Which method should Teresa use to calculate her transportation deduction? __________________________________________________________________________ Why? _____________________________________________________________________ __________________________________________________________________________Calculate Carmins adjusted gross income on her 2019 tax return. Then do one or both of the following, according to your professors instructions: a. Include a brief explanation of how you determined each item that affected adjusted gross income and any items you excluded from gross income. Your solution to the problem should contain a list of each item included in adjusted gross income and its amount, with the explanations attached. b. Write a letter to Carmin explaining how you determined each item that affected adjusted gross income and any items you excluded from gross income. You should include a list of each item included in adjusted gross income and its amount.Classify each of the following expenditures paid in 2019 as a deduction for AGI, a deduction from AGI, or not deductible: a. Roberto gives cash to his father as a birthday gift. b. Sandra gives cash to her church. c. Albert pays Dr. Dafashy for medical services rendered. d. Mia pays alimony to Bill. e. Rex, who is self-employed, contributes to his pension plan. f. Bonita pays expenses associated with her rental property. g. Lu, who operates a sole proprietorship, takes a client to dinner to discuss new business.
- Adrian was awarded an academic scholarship to State University for the 2023-2024 academic year. He received $6,500 in August and $7,200 in December 2023. Adrian had enough personal savings to pay all expenses as they came due. Adrian's expenditures for the relevant period were as follows: Tuition, August 2023 Tuition, January 2024 Room and board August-December 2023 January-May 2024 Books and educational supplies August-December 2023 January-May 2024 b. Regarding Adrian's scholarship, indicate whether the following statements are "True" or "False". C. a. When Adrian received the money in 2023, his total expenses for the academic year were not known. Therefore, he is allowed to defer reporting the income until 2024, when the uncertainty is resolved. d. $3,700 3,750 2,800 2,500 2023: 1,000 1,200 2024: The amount Adrian spent on tuition, books, and educational supplies in 2024 will not be excludable, since the scholarship was awarded in 2023. What amount, if any, must Adrian include in…Tammy teaches elementary school history for the Metro School District. In 2020 she has incurred the following expenses associated with her job: Noncredit correspondence course on history $900 Teaching cases for classroom use $1,800 Tammy’s employer does not provide any funding for the correspondence course or teaching cases. Identify the amount and type (for AGI or from AGI) of deductible expenses.Adrian was awarded an academic scholarship to State University for the 2021–2022 academic year. He received $6,500 in August and $7,200 in December 2021. Adrian had enough personal savings to pay all expenses as they came due. Adrian's expenditures for the relevant period were as follows: Tuition, August 2021 $3,700 Tuition, January 2022 3,750 Room and board August–December 2021 2,800 January–May 2022 2,500 Books and educational supplies August–December 2021 1,000 January–May 2022 1,200 What amount, if any, must Adrian include in his gross income for 2021 and 2022? If an amount is zero, enter "0". 2022: $fill in the blank f1e429096fd0f81_2
- Jack received $3,000 in educational assistance benefits from his employer during 2018 to reimburse him for the cost of course tuition and fees for him to earn a degree. The benefits were paid under an accountable plan and were not included in Jack's W-2. He has a modified adjusted gross income of $20,000 and he files single. A list of Jack's 2018 expenses follows. What is Jack's deductible tuition and fee expense? $500 for a bowling class not required for his degree $2,000 for accounting courses required for his degree $500 for textbooks $500 for lab fees for courses required for his degreeIn each of the following independent situations, determine how much, if any, qualifies as a deduction for AGI under § 222 (qualified tuition and related expenses). If an amount is zero, enter "0". Click here to access Exhibit 9.1 Limitations for Qualified Tuition Deduction. a. Lily is single and is employed as an architect. During 2020, she spends $4,100 in tuition to attend law school at night. Her modified AGI (MAGI) is $64,000. How much is her deduction for AGI under § 222 (qualified tuition and related expenses)? b. Liam is single and is employed as a pharmacist. During 2020, he spends $2,400 ($2,100 for tuition and $300 for books) to take a course in herbal supplements at a local university. His MAGI is $81,000. How much is his deduction for AGI under § 222 (qualified tuition and related expenses)? c. Hailey is married and is employed as a bookkeeper. She spends $5,200 for tuition and $900 for books and supplies in her pursuit of a bachelor's degree in accounting. Her MAGI is…Shellie, a single individual, received her Bachelor’s degree in 2019, and took a job with a salary of $45,000 per year. In 2020, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct? a. Taxpayers are not allowed a deduction for education loan interest in 2020. b. If her income had been $65,000, the deductible amount would have been phased out. c. The full $1,500 is deductible in arriving at adjusted gross income (AGI). d. If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest.
- Cameron works as an accountant for PWC Pty Ltd. Hoping to increase his earnings, he re-enrolled to University to do a degree in Forensic Accounting. During the 2020 financial year, he paid $9,000 in course fees, plus $1,600 in textbooks. He also paid $900 for travel expenses to travel from his home... to university... and back to his home. Required: How much can Cameron claim in allowable deductions during the 2020 financial year? (You must give reasons for your calculations and refer to law)Travis and Jessica Coleman, a married couple who will file jointly, are both teachers. In 2019, Travis had receipts totaling $386 in qualifying expenses for his classroom. Jessica had receipts totaling $257. They both worked over 900 hours during the school year and were not reimbursed by their employer. What is the maximum amount of the educator expense deduction that they may claim on their joint return? $250 $386 $500 $643For or From AGI Deductions. Roberta is an accountant employed by a local firm. Duringthe year, Roberta incurs the following unreimbursed expenses:Travel to client locations $750Subscriptions to professional journals 215Taking potential clients to lunch 400Photocopying 60a. Identify which of these expenses are deductible and the amount that is deductible.Indicate whether they are deductible for or from AGI.b. Would the answers to Part a change if the accounting firm reimburses Roberta forthese expenses?c. Assume all of the same facts as in Part a, except that Roberta is self-employed. Identifywhich of the expenses are deductible, and indicate whether they are deductions for or from AGI.
