Which of the Following Is a True Statement

question 65

Multiple Choice

Which of the following is a true statement?

• A)For purposes of the deduction for educational interest, an educational loan must be used to pay tuition to any type of school.
• B)The maximum deduction for educational interest is $5,000 for married taxpayers filing jointly.
• C)Self-employed taxpayers are not allowed to deduct health care premiums if the taxpayer is eligible to participate in their spouse's employer-provided health plan.
• D)Self-employment taxes paid by self-employed taxpayers are deductible as business expenses.
• E)All of the above are truE.Simply being eligible to participate in a spouse's employer-provided health plan precludes the deduction for health care premiums for self-employed taxpayers.

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Definitions:

Business Firms

Entities involved in commercial, industrial, or professional activities, aimed at generating profits.

Public Good

A service or product offered to every member of a society for free, by either a governmental entity or a private organization or person, with no intention of making a profit.

Tennessee Valley Authority

A U.S. government corporation established in 1933 to address issues related to flooding, electricity generation, and economic development in the Tennessee Valley region.

Consumption

The use of goods and services by households, constituting a primary component of GDP.