A Taxpayer Who Itemizes Must Use Form 1040, and Cannot

question 148

True/False

A taxpayer who itemizes must use Form 1040, and cannot use Form 1040EZ or Form 1040A.

Understand the criteria for deducting education expenses related to maintaining or improving existing skills or qualifying for a new trade or business.

Compute cost recovery deductions for business property including office furniture and equipment.

Recognize the tax implications of hobby activities and the limitations on expense deductions.

Identify what constitutes a trade or business expense.

---

Definitions:

Workplace Democracy

refers to a variety of arrangements intended to increase employees' involvement in decision-making and management of their working environments for more equitable and responsive workplaces.

Wagner Act

A foundational piece of labor legislation in the United States passed in 1935 that established the rights of workers to unionize and to engage in collective bargaining with employers.

Social Security Act

1935 law that created the Social Security system with provisions for a retirement pension, unemployment insurance, disability insurance, and public assistance (welfare).

Pensions

Regular payments made during a person's retirement from an investment fund to which that person or their employer has contributed during their working life.