Why Pay A Professional? Income Tax Quiz

Explanation
The answer is AN ABORTION. Shockingly, an abortion is the only expense listed here that qualifies for a tax deduction.

Explanation
The answer is FALSE. You cannot deduct home owner's association dues.

Explanation
The answer is MARRIED FILING SEPARATELY. Married Filing Separately is the only filing status in which you cannot claim the EIC (Earned Income Tax Credit).

Explanation
The answer is FACT. Gambling losses are indeed tax deductible, but only to the extent of your winnings. This requires you to report all the money you win as taxable income on your return. However, the deduction for your losses is only available if you are eligible to itemize your deductions. If you claim the standard deduction, then you can't reduce your tax by your gambling losses.

Explanation
The answer is FALSE. You can't deduct the cost of elementary or secondary school tuition. But on the bright side, one tax break that helps cover those bills was saved from serious downsizing by the fiscal cliff deal. Coverdell Educational Savings Accounts permit taxpayers can contribute up to $2,000 a year to an account from which withdrawals (including earnings) can be used tax free to pay for qualified education expenses including tuition, books, supplies, uniforms.

Explanation
The answer is DISABILITY PENSIONS. The disability pension is generally paid to a taxpayer who retires because of a disability before the minimum retirement age set by the employer. The disability pension is treated as taxable wages until the taxpayer reaches minimum retirement age and regular pension kicks in.

Explanation
The answer is TRUE. You can claim this person as a qualifying dependent relative long as their income was less than $3,900 in 2013, you provided more than half the person's total support or whomever else provided half of the support issued you with a signed statement agreeing no to claim the exemption for this dependent.

Explanation
The answer is YOU. The IRS says that if Mom or Dad makes a payment on your student loan, you, the child, can qualify to deduct up to $2,500 of student loan interest paid, as long as your parents don't claim you as a dependent.

Explanation
The answer is FALSE. The payer doesn't get a deduction; nor does the recipient pay income tax on the child support.

Explanation
The answer is FALSE. Because the Salvation Army sells your car at an auction to raise money to help it's mission, you can only deduct the amount the car was auctioned off for.