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JAMES Taxpayer has AGI of $100,000 in 2018 for the following He has doctor costs of...

JAMES Taxpayer has AGI of $100,000 in 2018 for the following
1. He has doctor costs of $10,000, hearing aid of $1,000, bayer aspirin of $500, braces of $3,000, and eyeglasses of $1000. What is is deductible medical?

He has state withholding of $10,000, property taxes of $5,000, DMV of $500. What is his deductible state taxes?

He purchased a home in 2018, and paid mortgage interest of $30,000. The loan on the home is $1,000,000. He also has credit card debt interest of $1000. What is his deductible interest?

He has employee business expenses of $3,000, and tax preparation fees of $500. His deductible miscellaneous expenses would be?

Expert Solution

A. Deductible medical expenses are which exceed 7.5% of adjusted gross income. (For 2018 specially).

Total eligible expenditure :

Doctor costs. =$10000

Hearing aid. =$1000

Bayer aspirin. =$500

Braces. =$3000

Eye glasses. =$1000

Total =$15500.

Deductible expenditure will be the amount which exceeds 7.5% of adjusted grss income

7.5% of gross income =7500.

Eligible amount of deduction =$15500-$7500=$8000.

B.For 2018 maximum limit of deduction is $10000.only .

Currently it is unlimited.

Eligible deduction =$10000.

C.Eligible interest expenditure are only mortgage interest and not credit card interest.

Amount of deduction =$30000.

D.we can deduct only unreimbursed employee expenses from income.

By assuming it is unreimbursed ,it is eligible for deduction.

Tax preparation fees include payment made to professional like accountants,lawyers,etc

They are eligible for deduction.

Total deduction =$3000+$500=$3500.

jeff jeffy answered 1 year ago

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