A-5 John is filing his Federal return and, although he wishes to itemize his return, he is unable to do so. With the following listof itemizable expenses; Would he be able to do so on the State return? (John is under 65 and single, with an AGI of$95,000)• Mortgage interest: $4,500• Real estate taxes: $2,500• State income taxes: $4,500• Unreimbursed employee expenses: $3,500• Tax prep fees: $750O No; Since the California is conformal to the IRS with itemizing he also cannot itemize on the State return.No; Even with the adjustments for State itemizing the amount is not enough to clear his standard deduction and therefore he cannotitemize.Yes; He can itemize the State return since he can add the employee expenses and tax prep fees, while removing the state taxes, andthe total value is still larger than his standard deduction value.Yes; He can itemize the State return, but realistically he should be able to itemize on the Federal return, too, which means thepremise of the question is wrong.

Based on the information provided, let's evaluate John's ability to itemize on the State…

John is filing his Federal return and, although he wishes to itemize his return, he is unable to do so. With the following list of itemizable expenses; Would he be able to do so on the State return? (John is under 65 and single, with an AGI of $95,000)

John is filing his Federal return and, although he wishes to itemize his return, he is unable to do so. With the following list of itemizable expenses; Would he be able to do so on the State return? (John is under 65 and single, with an AGI of $95,000)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 61P

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