Michael is 49 years old and files as single. His 2021 adjusted gross income (AGI) is $49,500, which includes gambling winnings of $1,000. Michael would like to itemize his deductions this year. Michael brings documentation for the following expenses: $8,200 Hospital and doctor bills $700 Contributions to Health Savings Account (HSA) $2,500 Long Term Care Insurance premiums before age limitation applied $3,400 State withholding (higher than Michael’s calculated state sales tax deduction) $300 Personal property taxes based on value of vehicle $400 Friend’s personal GoFundMe campaign $275 Cash contributions to the Red Cross $100 Fair market value of clothing in good condition donated to the Salvation Army (Michael purchased clothing for $800) $7,500 Mortgage interest $820 Real estate tax $230 Mortgage Insurance Premiums (PMI) on a home he purchased in 2017. $150 Homeowners association fees $2,000 Gambling losses Need help on this question: 1. What amount of gambling losses is Michael eligible to claim as a deduction on his Schedule A? A. True B. False 2. What amount of gambling losses is Michael eligible to claim as a deduction on his Schedule A? A. $0 B. $500 C. $1,000 D. 2,000 Give both 1 and 2
Michael is 49 years old and files as single.
His 2021 adjusted gross income (AGI) is $49,500, which includes gambling winnings
of $1,000.
Michael would like to itemize his deductions this year.
Michael brings documentation for the following expenses:
$8,200 Hospital and doctor bills
$700 Contributions to Health Savings Account (HSA)
$2,500 Long Term Care Insurance premiums before age limitation applied
$3,400 State withholding (higher than Michael’s calculated state sales tax deduction)
$300 Personal property taxes based on value of vehicle
$400 Friend’s personal GoFundMe campaign
$275 Cash contributions to the Red Cross
$100 Fair market value of clothing in good condition donated to the Salvation
Army (Michael purchased clothing for $800)
$7,500 Mortgage interest
$820 Real estate tax
$230 Mortgage Insurance Premiums (PMI) on a home he purchased in 2017.
$150 Homeowners association fees
$2,000 Gambling losses
Need help on this question:
1. What amount of gambling losses is Michael eligible to claim as a deduction on his
Schedule A?
A. True
B. False
2. What amount of gambling losses is Michael eligible to claim as a deduction on his
Schedule A?
A. $0
B. $500
C. $1,000
D. 2,000
Give both 1 and 2
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