Question

Kristina paid mortgage interest of

$6,320.00 and Medical Expenses of
$19,500.00 during 2022. Her
GROSS INCOME was $32,500.
16. Should Kristina take the
standard deduction or itemize her
two expenses? Why?
A)She should take the standard
deduction because it would be larger than her itemized deductions.
B) She should take the itemized
deductions because they would be larger than the standard deduction.
C) It wouldn't matter. Choosing either one
wouldn't change the outcome of your tax calculations.

Answer 1

B) She should take the itemized deductions because they would be larger than the standard deduction.

Explanation:

Given Kristina will file a single so her standard deduction for 2022 is $12,950.

For itemized deduction, she can include her mortgage interest of $6,320.00.

For her medical expenses, it has to be more than 7.5% of her gross income of $32,500 => 7.5% of $32,500 = $2437.5.

so her deduction for medical expenses is $19,500 - $2437.50 = $17,062.5

so her total itemized deduction is $6,320.00 + $17,062.50 = $23,382.50

Her itemized deduction is larger than standard deduction for single filing. So itemized deduction is the best option for Kristina.