Michael and Sarah Thompson have an adjusted gross income (AGI) of $420,000. They have itemized deductions totalling $24,500, consisting of: $9,500 in medical expenses that exceed 10% of AGI $4,500 in property taxes $6,000 in housing interest $4,500 in miscellaneous itemized deductions that exceed 2% of AGI Calculate the total amount of their itemized deductions.
Michael and Sarah Thompson have an adjusted gross income (AGI) of $420,000. They have itemized deductions totalling $24,500, consisting of: $9,500 in medical expenses that exceed 10% of AGI $4,500 in property taxes $6,000 in housing interest $4,500 in miscellaneous itemized deductions that exceed 2% of AGI Calculate the total amount of their itemized deductions.
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 40P
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Financial Accounting Question
Transcribed Image Text:Michael and Sarah Thompson have an adjusted gross income (AGI) of
$420,000. They have itemized deductions totalling $24,500, consisting of:
$9,500 in medical expenses that exceed 10% of AGI
$4,500 in property taxes
$6,000 in housing interest
$4,500 in miscellaneous itemized deductions that exceed 2% of AGI
Calculate the total amount of their itemized deductions.
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