Question
1. Amy is a single taxpayer living in Forest Hills, New York, with adjusted gross income of $69,057. Her employer withheld $7,761 in federal income
1. Amy is a single taxpayer living in Forest Hills, New York, with adjusted gross income of $69,057. Her employer withheld $7,761 in federal income tax, $4,901 in state income tax, and $2,709 in local income taxes from her salary. The real estate taxes on her home are $2,058 and her personal property tax based on the value of her car is $371. Also, she paid $2,638 in state sales taxes for the year. Assuming she elects to itemize her deductions, how much may Amy deduct on Schedule A of Form 1040 for taxes paid? Show calculation below.
2. Larry donated 300 shares of Acme Corporation Stock to the Salvation Army, a qualified charitable organization. He purchased the stock in 2007 and paid $16,823. The stock was worth $57,690 at the time of his donation. Larry's adjusted gross income this year was $93,470. Calculate the amount of his charitable contribution deduction and any carryover to next year.
3. Paul incurred $25,670 in legitimate, out-of-pocket medical expenses during the current year. His adjusted gross income amounted to $83,560 this year, and he received a partial reimbursement of $9,412 from his insurance company. How much is his itemized deduction for medical expenses?
4. John and Abigail Adams are a happily married couple. John, age 71, and Abigail, age 64, have no children. Both spouses are gainfully employed and will file jointly this year. The couple's combined gross income amounted to $164,009, their deductions for adjusted gross income amounted to $26,380, and their itemized deductions amounted to $25,117. Calculate the couple's taxable income.
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