Question

archie is itemizing deductions on his federal income tax return and had $1700 in non-reimbursed work expenses last year. If his AGI was $48000, and is non-reimbursed work expenses are deducted to the extent that they exceed 2% of a taxpayer's AGI, how much can Archie deduct for non-reimbursed work expenses? A. $1666 B.$740 C.$34 D.960

Answer 1

B

Step-by-step explanation:

$740

Answer 2

You can deduct any non-reimbursed work expenses that exceed 2% of your AGI.

In this case, 2% of Archie's AGI is (48,000 X 2%)= 960

So if you take the total expense of 1,700 and subtract the unallowable amount of 960 (2% of AGI), he can deduct B. $740