Section 4 Quiz Qs

Question 1

What is an unreimbursed medical expense deduction?

Answer 1

10% of AGI. So, if someone has AGI of $80,000 and $9,500 of unreimbursed Medical Expenses, they can deduct $1,500 (Because 10% is $8,000 and not deductible, only the amount over 10%.)

Question 2

impairment-related Expense

Answer 2

• Work expenses are not subject to 2% AGI limitation on misc. itemized.
• Work expenses are not subject to 10% AGI limitation for med expenses.
• Deduction is only available for indiv.; as defined as those having a physical or mental disability or impairment.

Question 3

Living arrangements

Answer 3

Placement on a wait list may accelarate the move of a special needs indiv. from his home.

Question 4

Funding a supplement needs trust

Answer 4

Can be accomplished by placing probate assets to provide discretionary benefits to the special needs child.

Question 5

Applying for and maintaining govt. benefits

Answer 5

• Individuals disability with be subject to periodic review.

- There is an appeal process for invidivuals whose initial claim for SSDI are rejected.

Question 6

Deductions from Gross Income

Answer 6

• Business Expenses of self-employed taxpayers
• Charitable contributions of individuals
• Alimony payments (divorce prior to 1/1/2019)