Question

Stacey files as head of household with two dependents. She has AGI of $123,000 for 2020. She incurred the following expenses and losses during the year:

Medical expenses before the 7.5%-of-AGI limitation $15,575
State and local income taxes 7,200
State sales tax 1,400
Real estate taxes 2,800
Home mortgage interest 5,900
Credit card interest 1,100
Charitable contribution 2,400
Casualty loss before 10% limitation (after $100 floor;
not in a Federally declared disaster area) 8,300
Unreimbursed employee expenses 5,500
Calculate Stacey's allowable itemized deductions for the year.

Answer 1

$21,575

Step-by-step explanation:

Calculation to determine the allowable itemized deductions for the year.

Medical Expense $3,275

[$12,500*($123,00*7.5%)]

State and local income taxes $7,200

Real estate taxes $2,800

Home mortgage interest $5,900

Charitable contribution $2,400

Allowable itemized deductions $21,575

Therefore allowable itemized deductions for the year is $21,575