For calendar year 2020, Jean was a self-employed consultant with no employees. She had $80,000 of net profit from consulting and paid $7,000 in medical insurance premiums on her policy covering 2020. How much of these premiums may Jean deduct as a deduction for AGI? As an itemized deduction? If an amount is zero, enter "0". Self-employed persons can deduct ( ) % of their medical insurance premiums as a deduction for AGI in 2020. Thus, Jean may deduct $( ) as a deduction for AGI and she may deduct $ ( )as an itemized deduction (subject to the AGI floor).
1. For calendar year 2020, Jean was a self-employed consultant with no employees. She had $80,000 of net profit from consulting and paid $7,000 in medical insurance premiums on her policy covering 2020. How much of these premiums may Jean deduct as a deduction for AGI? As an itemized deduction? If an amount is zero, enter "0".
Self-employed persons can deduct ( ) % of their medical insurance premiums as a deduction for AGI in 2020. Thus, Jean may deduct $( ) as a deduction for AGI and she may deduct $ ( )as an itemized deduction (subject to the AGI floor).
2. In December of each year, Eleanor Young contributes 10% of her gross income to the United Way (a 50% organization). Eleanor, who is in the 24% marginal tax bracket, is considering the following alternatives for satisfying the contribution.
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Eleanor has asked you to help her decide which of the potential contributions listed above will be most advantageous tax-wise. Evaluate the four alternatives and complete a letter to Eleanor.
Determine the amount of the charitable contribution for each option.
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| Maloney, Young, Nellen, & Persellin, CPA 5191 Natorp Boulevard Mason, OH 45040 |
| December 5, 2020 |
| Ms. Eleanor Young 2622 Bayshore Drive Berkeley, CA 94709 |
3. Evan is single and has AGI of $277,300 in 2020. His potential itemized deductions before any limitations for the year total $52,300 and consist of the following:
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After all necessary adjustments are made, what is the amount of itemized deductions Evan may claim? Do not round intermediate calculations. Round medical deduction and final answer to the nearest dollar.
Evan's total itemized deduction is $
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