Question

In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor deductible from AGI before considering income limitations or the standard deduction. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
a. Ted paid $30 rent on a safety deposit box at the bank. In this box he kept the few shares of stock that he owned.
Deductible for AGI $
Deductible from AGI $
Not deductible $
b. Tyler paid $154 for minor repairs to the fence at a rental house he owned.
Deductible for AGI $
Deductible from AGI $
Not deductible $
c. Timmy paid $775 for health insurance premiums this year. Timmy is employed full-time and his employer paid the remaining premiums as a qualified fringe benefit.
Deductible for AGI $
Deductible from AGI $
Not deductible $
d. Tess paid $1,880 of state income taxes on her consulting income.

Answer 1

Answer:

a. Ted paid $30 rent on a safety deposit box at the bank. In this box he kept the few shares of stock that he owned.

• Not deductible

Is not a business expense nor it can be itemized.

b. Tyler paid $154 for minor repairs to the fence at a rental house he owned.

• Deductible for AGI

Repairs and maintenance expenses of rental property decrease your AGI.  

c. Timmy paid $775 for health insurance premiums this year. Timmy is employed full-time and his employer paid the remaining premiums as a qualified fringe benefit.

• Not deductible

If Timmy's medical expenses were more than 10% of your AGI, then you can deduct the difference. But I doubt Timmy earns less than $7,750.

d. Tess paid $1,880 of state income taxes on her consulting income.

• Deductible from AGI

If you itemize deductions, you can deduct up to $10,000 in state or local taxes.