Question

1. The deduction for cash charitable contributions is limited to twenty-five percent of the taxpayer’s AGI.

True or False

2. The objective of the medical expense deduction is to reduce the after-tax cost of medical treatment for all taxpayers, even for those taxpayers with little medical expense.

True or False

Answer 1

1

The statement is false

The deduction for cash charitable contributions is limited to 50% or 30% of AGI

2

The statement is false

The objective of the medical expense deduction is not to reduce the after-tax cost of medical treatment for all taxpayers, even for those taxpayers with little medical expense.

The objective of the medical expense deduction is to reduce the cost of travel so that there should not be any tax on the medical expenses