LO 12.3 3. In the 2010 tax year,Michelle paid the following amounts relating to her 2008 tax return:

Tax deficiency $5,000 Negligence penalty 1,000 Interest 500 Underpayment of estimated tax penalty 350 What amount of the above items may be deducted on Michelle’s 2010 individual income tax return?

$ ____________ Explain __________________________________________________________________