Final answer:
To find Yvette's deductible amount of miscellaneous itemized deductions, calculate 2% of her adjusted gross income, and subtract this number from her total miscellaneous deductions. The amount after this threshold limit is the deductible portion.
Step-by-step explanation:
The student asked about how to calculate the deductible amount of miscellaneous itemized deductions after applying the floor limitation based on the adjusted gross income.
To address this question, we need to understand the basic concepts of taxation, the calculation of adjusted gross income, deductions, and the floor limitation applied to miscellaneous itemized deductions.
Adjusted gross income is computed by summing up all sources of income and making certain deductions.
Yvette had miscellaneous itemized deductions totaling $800 for tax preparation fees, $1,200 for job-related educational expenses, and $820 for unreimbursed employee business expenses.
The deductible amount after considering the threshold limit is mentioned as $1,180, which implies that deductions above a certain percentage of the adjusted gross income are allowable.
The floor limitation for miscellaneous itemized deductions is typically 2% of the adjusted gross income (this can vary depending on tax laws in place for the tax year in question).
You first calculate 2% of Yvette's adjusted gross income, then subtract this number from the total of her miscellaneous deductions to determine the amount that can be deducted.