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 for Han and herself in a qualified plan provided by the school district.Which of the following is a true statement?
A) The tools and supplies are deductible for AGI while the health insurance is an itemized deduction.
B) Both expenditures are deductible for AGI.
C) The tools and supplies are an itemized deduction but the health insurance is deductible for AGI.
D) Both expenditures are itemized deductions.
E) Neither of the expenditures is deductiblE.Business expenses for self employed are Schedule C deductions but health insurance premiums are itemized deductions if the taxpayers are eligible to participate in an employer-provided health plan.
Correct Answer:
Verified
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