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8 February, 01:29

Dan is a single, self-employed carpenter who earned $120,000 this past year in self-employment income. Dan paid the following expenses this year. Which of the expenses are deductible for AGI.

1. The cost of health insurance.

2. The employer portion of self-employment tax paid

3. Penalty on early withdrawal of funds from a certificate of deposit

A.

All of the choices are deductible for AGI.

B.

Numbers 1 and 2 only.

C.

Numbers 2 and 3 only.

D.

None of the choices is deductible for AGI.

E.

Numbers 1 and 3 only.

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Answers (1)
  1. 8 February, 01:50
    0
    The correct answer is A)

    All choices are deductible for Adjusted Gross Income (AGI)

    Explanation:

    Other items which are deductible "above the line" are:

    Contributions to a Retirement Account Alimonies (excludes child support) deductions from health savings account

    etc

    Cheers!
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