Han is a self-employed carpenter and his wife, Christine, works full time as a grade school teacher. Han paid $525 for carpentry tools and supplies, and Christine paid $3,600 as her share of health insurance premiums (not with pretax dollars)for Han and herself in a qualified plan provided by the school district (not through an exchange). Which of the following is a true statement?

Question

Quizplus · Accepted Answer

The tools and supplies are deductible for AGI because they are considered ordinary and necessary business expenses for Han's self-employed carpentry business. Christine's health insurance premiums are deductible as an itemized deduction because they are medical expenses not paid with pretax dollars, and they exceed the threshold for medical expense deductions.

Han Is a Self-Employed Carpenter and His Wife, Christine, Works