Question

Tariq and Hanan are a married couple and file joint return with AGI of $275,500 for 2019.They paid $25,000 of mortgage interest, $12,000 of unreimbursed medical expenses, $5,000 of property taxes, $3,500 interest on a credit card, and $15,000 of charitable contributions for the year. How much their itemized deductions for 2019?

Samira, who is single and 48 years old, itemizes her deductions, and has an AGI of $100,000.

Samira provided the following information about her expenditures for 2019:

            Interest paid on credit card                                                                1,200

            Mortgage interest payments on $250,000 principal amount              11,800

            Real estate taxes                                                                                   2,100

            State income taxes withheld on salary                                               5,400

            Traditional IRA contribution                                                               3,500

            Contribution to charitable contribution                                               1,700

           

If Samira itemizes, what are her total itemized deductions in 2019:

	A.	$25,700.
	B.	$21,000.
	C.	some other amount.
	D.	$18,100.
	E.	$22,200.

Answer 1

1) Calculation for itemized deduction  of Tariq and Hanan :

Mortgage interest [ It is deductible on first and second mortgage ]	$25,000
Unreimbursed medical expense [ Maximum limit 7.5 % on AGI for 2019]	$12,000
Property tax	$5,000
Interest on credit card [ Not deductible because it is a personal interest ]	Not Applicable
Charitable contribution [maximum up-to 50% of AGI ]	$15,000
Total itemized deduction of Tariq and Hanan	$ 57,000

2) Calculation for itemized deduction of Samira

Interest on credit card [ It is a personal interest and thus hasn't been deductible ]	Not Applicable
Mortgage interest payments [ It is deductible on first and second mortgage]	$11,800
Combination of Real estate tax and state income tax [ $ 2,100 + $ 5,400] [ Maximum limit $ 10,000]	$ 7,500
Traditional IRA contribution is not a part of itemized deduction , it is an above the line deduction to calculate AGI.	Not Applicable
Charitable contribution [Maximum up-to 50% of AGI]	$ 1,700
Total itemized deduction of Samira	$21,000