Reference no: EM132509865
Questions -
Q1. Tim and Faith are a married couple living in a non-community property state. Faith became ill, and Tim paid $6,000 in medical expenses from his account in the first seven months. Due to the stress of the illness, the marriage dissolved in September and Faith incurred another $7,000 in medical expenses after she moved back home with her parents. How much can Tim deduct on his tax return for the medical expense incurred during Faith's illness?
a) $6,000
b) $3,000
c) $0
d) $13,000
Q2. Letty and Mike are trying to adopt a child. They incurred $1,000 in medical expenses for the child before the adoption process began. Before the adoption process, per one of the provisions of the adoption, they reimbursed the adoption agency another $2,000 for medical expenses. During the time they were waiting for the adoption to become final, they paid additional medical expenses of $3,000. Assuming the child is a qualified dependent, how much of the expenses described are deductible medical expenses?
a) $1,000
b) $3,000
c) $5,000
d) $6,000
Q3. Last year, Daniella bought her first home. When she received Form 1098 from her mortgage company, she saw it included how much real estate taxes were paid out of her escrow account. Which of the following choices concerning real estate taxes on a home is accurate?
a) Real estate taxes are deductible by the person paying the tax, even if the payer is not the property owner.
b) Real estate taxes are deductible on IRS Form 1040, Schedule C.
c) Real estate taxes are deductible on IRS Form 1040EZ.
d) Real estate taxes are deductible on IRS Form 1040, Schedule A only if the taxpayer is the property owner and paid the taxes.