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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)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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) • Mortgage interest: $4,500 • Real estate taxes: $2,500 • State income taxes: $4,500 • Unreimbursed employee expenses: $3,500 • Tax prep fees: $750 O 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 cannot itemize. Yes; He can itemize the State return since he can add the employee expenses and tax prep fees, while removing the state taxes, and the 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 the premise of the question is wrong.
Transcribed Image Text: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) • Mortgage interest: $4,500 • Real estate taxes: $2,500 • State income taxes: $4,500 • Unreimbursed employee expenses: $3,500 • Tax prep fees: $750 O 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 cannot itemize. Yes; He can itemize the State return since he can add the employee expenses and tax prep fees, while removing the state taxes, and the 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 the premise of the question is wrong.
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