Question

Athena wants to determine if she should itemize her deductions. She has identified several possible deductions.

Which of the following is NOT a proper itemized deduction?
A. Contributions to charitable organizations
B. Mortgage interest
C. Medical and dental expenses in excess of 7.5% of AGI
D.Miscellaneous expenses less than 2% of AGIE. State income taxes

Answer 1

D) Miscellaneous expenses less than 2% of AGI

Step-by-step explanation:

Employees are subject to the 2% rule. That means that any itemized deduction they want to make must exceed 2% of their adjusted gross income (AGI). Only self employed (independent contractors) are allowed to deduct expenses that are lower than 2% of their AGI.