Respuesta :
Answer:
$4,125 only in situation A
Explanation:
Deductions made to reach an individual’s adjusted gross income include:
1. Certain retirement plan contributions, such as individual retirement accounts (IRA), SIMPLE IRA, SEP-IRA, and qualified plans
2. Half of the self-employment tax
3. Healthcare savings account (HSA) deductions
4. Alimony paid (included in the recipient’s gross income)
5. Moving expenses (but since 2018, only if you’re active-duty military moving due to military orders)
6. Losses incurred from the sale or exchange of property
7. Early-withdrawal penalties levied by financial institutions
8. School tuition, fees, and student loan interest (exceptions and limits usually apply)
9. Jury duty pay turned over to a filer’s employer
10. Some business-related expenses incurred by performing artists, teachers, fee-basis government officials, and reservists
Therefore applying to the scenario, we see that Clem is only able to claim deductions in situation A for the total cost incurred because they are covered under categories 3 and 10 above.
A) Clem is self-employed and this year he incurred $525 for tools and supplies related to his job. Since neither were 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).
Hence, the amount of expenses that are deductible are
Tools for self employment - 525
Health Insurance premium - 3,600
TOTAL.......................................$4,125
