Question

22.   D and J are married and file a joint return. The standard deduction for their filing status is $24,000 They have the following itemized deductions:
Medical Bills that exceeded the 7.5% limit $8,000
Mortgage Interest expense $10,500
Property tax                $10,000
State Sales tax $7000
Miscellaneous deductions $1550
Should they itemize their deductions or use the standard deduction?

Answer 1

	D& J Income Tax Return
		Available deduction Amt $
	Stnadard deduction Available for Joint filing as Married	$                                              24,000
	Itemized Deductions
1	Medical Bills >7.5% AGI limit	$                                                8,000
2	Mortgage Interest expense (assuming paid on $750000 of debt	$                                              10,500
	on primary or secondary home)
3	Property Tax +State Tax ( Maximum allowable deduction $10,000)	$                                              10,000
4	Misc Deductions ( Eliminated now)	$                                                       -
	Total Itemized deductions	$                                              28,500
	So the Itemized deduction amount total is > than Standard
	deduction, therefore , they should use Itemized deduction.