Question

Determine the maximum deduction from AGI in 2017 for each of the following taxpayers:

a. Pedro is single and maintains a household for his father. His father is not a dependent of Pedro’s. Pedro’s itemized deductions are $6,400, of which $800 are for real estate taxes.

b. Jie and Ling are married. Jie is 66 years old, and Ling is 62. They have itemized deductions of $14,000.

c. Myron and Samantha are married, and both are 38 years of age. Samantha is legally blind. They have itemized deductions of $12,500.

d. Joelynn is divorced and maintains a home for her 21-year-old son, who is a part-time student at the local university. He pays less than one-half of his support and his earned income for the year is $3,900. Her itemized deductions are $9,000.

e. Frank is 66 years of age. During the year, his wife dies. His itemized deductions are $13,700.

f. Assume the same facts as in part e, except that Frank’s wife dies in 2016.

Answer 1

a.

He will use his itemized deductions of $6,400 because it exceeds the standard deduction of $6,350 for a single taxpayer.

 

b.

They will use their itemized deductions of $14,000 because it exceeds their standard deduction of $13,950 ($12,700 regular standard deduction + $1,250 additional deduction for Jie being over age 65).

 

c.

Their standard deduction is $13,950 ($12,700 regular standard deduction + $1,250 additional deduction for blindness). They will deduct the standard deduction because it is greater than their itemized deductions of $12,500.

 

d.

She will use the standard deduction for head of household of $9,350 because it exceeds her itemized deductions of $9,000. Joelynn qualifies as head of household because her son’s gross income is less than $4,050 (the personal exemption amount). Therefore, Joelynn would meet all the tests for her son to be considered a qualifying relative.

 

e.

For 2017, Frank is considered married. His standard deduction is $13,950 ($12,700 regular standard deduction + $1,250 additional deduction for being over age 65). He will deduct the standard deduction because it is greater than his itemized deductions of $13,700.

 

f.

For 2017, Frank is considered single (he doesn’t qualify for surviving spouse because he has no dependent children living in the home). His standard deduction is $7,900 ($6,350 regular standard deduction + $1,550 additional deduction for being over age 65). He will deduct his itemized deductions of $13,700 because it is greater than his standard deduction.

 Note: Frank does not receive any benefit (i.e., an increase in his itemized deductions) for being over 65. Being over 65 can only increase his standard deduction.