Question

Duke and pat collins have adjusted gross income of $358,000. they have itemized deductions of $20,000 consisting of $8,000 in medical expenses that exceed 10% of adjusted gross income, $3,000 in property taxes, $4,000 in housing interest, and $5,000 in miscellaneous itemized deductions that exceed 2 percent of adjusted gross income. what is the amount of their itemized deduction?

Answer 1

$18,599

Step-by-step explanation:

the $8,000 in medical expenses are 100% deductible,

but property taxes, housing interest and other miscellaneous deductions are not 100% deductible : $3,000 + $4,000 + $5,000 = $12,000

of the $12,000, you will be able to deduct $12,000 - [($358,000 - $311,300) x 3%] = $12,000 - $1,401 = $10,599

total itemized deductions = $8,000 + $10,599 = $18,599