Question

Kara is single with no dependents. She has itemized deductions of $5000. What is the total of her "FROM AGI" deductions for 2015?

1) $9,000
2) $10,300
3) $15,300
4) $6,300

Answer 1

The total of Kara's "FROM AGI" deductions for 2015 would be the sum of the standard deduction and the personal exemption for that year, which is $10,300. Since her itemized deductions are less than the standard deduction, she would benefit more by claiming the standard deduction and personal exemption.

Step-by-step explanation:

The total of Kara's "FROM AGI" deductions for 2015 if she has itemized deductions of $5000 can be calculated using the following:

In 2015, for a single filer, the standard deduction was $6,300. Kara could either take the standard deduction or itemize her deductions. Since she has itemized deductions of $5000, which is less than the standard deduction, the more beneficial approach would be to take the standard deduction of $6,300.

Kara would also be allowed one personal exemption. In 2015, the personal exemption amount was $4,000. Therefore, her total deductions from AGI (adjusted gross income) would be the standard deduction plus the personal exemption, that is, $6,300 + $4,000 = $10,300.

Based on this computation, the correct answer would be option 2) $10,300.