Question

Which of the following items would be an itemized deduction on Schedule A of Fom 1040

a. Professional dues paid by an accountant (employed by Ford Motor Co)to the National Association of Accountants
b. Gambling losses to the extent of gambling winnings.
c. Job hunting costs.
d. Subscription to the Wall Street Journal.
e. None of the above.

Answer 1

The correct itemized deduction on Schedule A of Form 1040 would be professional dues paid by an accountant to the National Association of Accountants.

Step-by-step explanation:

Based on Schedule A of Form 1040, the itemized deduction options are as follows:

1. Professional dues paid by an accountant (employed by Ford Motor Co) to the National Association of Accountants: This would be a valid itemized deduction as it pertains to the accountant's profession and is directly related to their employment.
2. Gambling losses to the extent of gambling winnings: This is also a valid itemized deduction, but it is subject to certain limitations. An individual can deduct gambling losses only up to the amount of their gambling winnings.
3. Job hunting costs: Job hunting costs can be deducted as an itemized deduction, but there are certain criteria that must be met. The costs must be directly related to the job search, and the individual must be seeking employment in the same field as their previous job.
4. Subscription to the Wall Street Journal: A subscription to the Wall Street Journal would not be an itemized deduction as it is considered a personal expense rather than a business-related expense.

Therefore, the correct option for the asked question would be a. Professional dues paid by an accountant (employed by Ford Motor Co) to the National Association of Accountants as it is a valid itemized deduction on Schedule A of Form 1040.