ACC 129 Ch 4 Review

What is the maximum deduction for student loan interest for the tax year 2023?

• $1,000

• $2,500

• $3,000

• $5,000

For which of the following filing statuses is the student loan interest deduction not available when the MAGI is $190,000?

• Married, joint

• Unmarried

• Both A and B

• None of the above

Martha, a single taxpayer with a MAGI of $63,000, paid $1,000 of interest on student loans. How much can she deduct for the tax year 2023?

• $0

• $500

• $1,000

• $2,500

Which of the following is a requirement for a loan to be considered a qualified student loan?

• The loan must be used for transportation only.

• The loan must be used exclusively for qualified higher education expenses.

• The loan must be taken out by a dependent student.

• The loan must be for postgraduate education only.

What enrollment status must a student have to qualify for a student loan interest deduction?

• At least quarter-time

• At least half-time

• Full-time only

• Any enrollment status as long as they are a student

Who must be the student for the loan to be eligible for the student loan interest deduction?

• The taxpayer's dependent

• The taxpayer's spouse

• The taxpayer

• Any of the above, as long as they are not dependent on another taxpayer

Which of the following is NOT a qualification for a student loan to be eligible for interest deduction?

• The loan is made under a qualified employer plan.

• Includes interest paid during the remaining period of your student loan.

• The loan cannot be from a related person or made under a qualified employer plan.

• The student must be enrolled at least half-time in a degree program.

What is the limit on modified adjusted gross income (MAGI) for a married couple filing a joint return to qualify for student loan interest deduction?

• $90,000

• $160,000

• $185,000

• $200,000

What is the maximum deductible and annual out-of-pocket expenses for individual coverage under a High Deductible Health Plan (HDHP) for the calendar year 2023?

• Minimum Deductible $1,500 and Maximum Out-of-Pocket $7,500

• Minimum Deductible $1,000 and Maximum Out-of-Pocket $6,500

• Minimum Deductible $2,000 and Maximum Out-of-Pocket $8,000

• Minimum Deductible $1,500 and Maximum Out-of-Pocket $8,500

For family coverage, what is the maximum aggregate contribution an individual under age 55 can make to an HSA in 2023?

• $3,850

• $7,100

• $7,750

• $8,000