Question

Rick is a self-employed carpenter who had net earnings from self-employment of $3,500. He paid $325 per month for health insurance over the last year. Rick is entitled to a for AGI deduction for health insurance of:

a. $0.
b. $325.
c. $3,500.
d. $3,900.

Answer 1

Rick's for AGI deduction for health insurance is limited to his net earnings from self-employment of $3,500, which is the total deduction he can claim for health insurance expenses.

Step-by-step explanation:

Rick is a self-employed carpenter who had net earnings from self-employment of $3,500. Over the last year, he paid $325 per month for health insurance. To calculate Rick's for AGI deduction for health insurance, we multiply $325 by 12 months to get $3,900

However, this amount cannot exceed his net earnings from self-employment, which are $3,500. Therefore, Rick's for AGI deduction for health insurance is $3,500, which corresponds to the total net earnings from his self-employment.