Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
26th Edition
ISBN: 9781337702621
Author: Kevin E. Murphy, Mark Higgins
Publisher: Cengage Learning
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Question
Chapter 6, Problem 17DQ
To determine
Discuss the reason behind allowing the deduction of self-employment tax and medical insurance premiums for the taxpayers.
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Students have asked these similar questions
Which of the following can self-employed taxpayers NOT deducts as deductions for AGI?
The cost of the health insurance premiums paid by the self-employed
The employers portion of self-employment tax
Contributions to a SEP or other retirement programs from the self-employment
The income tax paid on the income earned by the self-employment
Contributions of the employer for the benefit for the benefit of the employee to retirement, insurance and hospitalization benefit plan is subject to the fringe benefit tax.
TRUE OR FALSE?
What are allowable deductions against gross income for purposes of computing regular income tax?
Business expenses
Family support
Personal expenses by the taxpayer
Expenses of employment
Chapter 6 Solutions
Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
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Similar questions
- What are the tax rates for FICA Social Security and FICA Medicare? What are the maximum taxable earnings amounts for each of these taxes?arrow_forwardWhich of the following is not a requirement to receive the premium tax credit for health care? Health care through the employer is not available Health insurance is purchased through the state or federal exchange Income must be no greater than 200 percent of the federal poverty line The taxpayer cannot be claimed as a dependentarrow_forwardWhich of the following is true about the self-employed health insurance deduction? The deduction can be claimed when a subsidized employer health insurance plan is also available. The deduction can be claimed if the taxpayer has an overall business loss from self-employment. Long-term care premiums may not be deducted within specified dollar limitations based on age. The self-employed health insurance deduction is a for AGI deduction. Dental insurance is not included as deductible self-employed health insurance.arrow_forward
- Which of the following is not an item deducted from salary expense to arrive at net pay? Multiple Choice O O FICA tax for Social Security FICA tax for Medicare These answer choices are all deducted from salary expense to arrive at net pay Federal unemployment taxarrow_forwardWhat percentage of medical insurance payments can self-employed taxpayers deduct for adjusted gross income on their 2019 tax return, assuming their self-employment income exceeds their medical insurance payments?arrow_forwardTaxpYer who make after-tax contributions to a qualified employer plan recover their investment cost when they begin to take periodic payments. How is their investment recovered?arrow_forward
- A taxpayer can not claim the hefalth insurance premium tax credit if?arrow_forwardTaxpayers who make after-tax contributions to a qualified employer plan recover their investment (cost) when they begin to take periodic payments. How is their investment recovered?arrow_forwardA self-employed taxpayer may be eligible to deduct amounts paid for medical insurance for themselves and for their families, as long as neither they nor their spouse were eligible for employer-sponsored health insurance. To claim this deduction, a qualifying taxpayer should:arrow_forward
- A self-employed taxpayer may be eligible to deduct amounts paid for medical insurance for themselves and for their families, as long as neither they nor their spouse were eligible for employer-sponsored health insurance. To claim this deduction, a qualifying taxpayer should: 1 Claim a nonrefundable tax credit based on the cost of the insurance. 2 Deduct the cost of the health insurance premiums as a business expense on Schedule C. 3 Only deduct the health insurance costs on Schedule A if they itemize their deductions. 4 Report the health insurance costs, up to the amount of net business income, as an adjustment to income on Schedule 1 and on Form 1040.arrow_forwardWhich of the following is an adjustment that will generally result in lower tax liability for an eligible taxpayer because it directly reduces the taxpayer's total income? An education credit. The health savings account deduction. Medical and dental expenses deduction. The retirement savings contributions credit (Saver's Credit)arrow_forward
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