John, who files as a single taxpayer, had AGI of $90,000 for 2020. He incurred to following expenses and losses during the year: Automobile Loan Interest $ 3,000 Casualty Loss (before 10% Limitationbut after $100 floor – not in a FederallyDeclared Disaster Area) 15,000 Charitable Contributions –Church 5,000 & Goodwill – clothing costing $1,000 with $500 FMV Home Mortgage Interest 15,000 Medical Expenses – Doctors, etc. 6,000 Medical Insurance Premiums 2,000 Medical Insurance Reimbursements 1,000 Real Estate Taxes 5,000 State Sales Tax 1,500 State & local Income Taxes 6,000 Tax Preparation Fees 500 Unreimbursed Employee Business Expenses 4,000 Part 1 - Compute John’s Medical Expense deduction for 2020. Show your calculations for full credit. Answer: Part 2 - Compute John’s Itemized Deductions for 2020 starting with the Medical Expense deduction that you calculated in Part 1 above. Show your calculations for full credit. Answer: Part 3 - What is the Standard Deduction for John? Should John itemize his deductions or take the standard deduction?
John, who files as a single taxpayer, had AGI of $90,000 for 2020. He incurred to following expenses and losses during the year:
Automobile Loan Interest $ 3,000
Casualty Loss (before 10% Limitationbut after $100 floor
– not in a FederallyDeclared Disaster Area) 15,000
Charitable Contributions –Church 5,000
&
Home Mortgage Interest 15,000
Medical Expenses – Doctors, etc. 6,000
Medical Insurance Premiums 2,000
Medical Insurance Reimbursements 1,000
Real Estate Taxes 5,000
State Sales Tax 1,500
State & local Income Taxes 6,000
Tax Preparation Fees 500
Unreimbursed Employee Business Expenses 4,000
Part 1 - Compute John’s Medical Expense deduction for 2020. Show your calculations for full credit.
Answer:
Part 2 - Compute John’s Itemized Deductions for 2020 starting with the Medical Expense deduction that you calculated in Part 1 above. Show your calculations for full credit.
Answer:
Part 3 - What is the Standard Deduction for John? Should John itemize his deductions or take the standard deduction?
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