Question

5.     A penalty charged by a commercial bank on the early withdrawal of money from a certificate of deposit account can be deducted for adjusted gross income.

6.     A single person with $2,400 of earned income and $3,000 of unearned income is entitled to contribute $5,000 to her IRA.

7.     Employees deduct qualified moving expenses as an itemized deduction.

8.   Employees exclude the value of meals and lodging provided by their employer when they are provided on the employer's premises for the convenience of the employee.

9.     Students with taxable scholarships report the taxable amount as additional wages.

10.  The maximum annual contribution to a Roth IRA to a single taxpayer, age 50, whose only source of income is $40,000 of wages is $5,000.

Answer 1

5) a penalty charge by a commercial bank on early withdraw of money from a certificate of deposit account is allowed as deduction form gross income.

7) employees deduct qualified moving expenses adjustment to income not an itemized deduction.

8) yes as per sec.119 (a) an employees to exclude the value of meals and loading provide by the employer. Under the gross total income if the employer must be furnished the meals on the employer business premises for the convenience of the employees.

9)yes, students with taxable scholarship report this amount as a additional wages on the form 1040EZ. Students write in the words SCH and taxable amount in the space to the left of where taxable wages are reported.

10)maximum annual contribution to a Roth IRA is $5500 ($6500if you are age 50 or older by the end of the year )if you are single and your taxable adjusted income less than $118000.