5). Fred and Lucy are married, ages 33 and 32, and together have AGI of $120,000 this year working as employees of a company. They have four dependents and file a joint return. They pay $5,000 for a high deductible health insurance policy and contribute $2,600 to a qualified Health Savings Account. During the year, they paid the following amounts for medical care: $9,200 in doctor and dentist bills and hospital expenses, and $3,000 for prescribed medicine and drugs. In October of this year, they received an insurance reimbursement of $4,400 for the hospitalization. They expect to receive an additional reimbursement of $1,000 in January of next year. Determine the maximum itemized deduction allowable for medical expenses this year. What would change if they are self-employed instead? 6). George Leavitt is single and age 56, has AGI of $265,000, and incurs the following expenditures in the current year: Medical expenses $27,000 Interest on home mortgage (mortgage was $500,000) 15,500 State income tax 7,500 State sales tax 4,500 Real estate tax 8,600 Charitable contribution 6,500 What is the amount of itemized deductions George may claim? 7). Tax Return Assignment - you will be graded based on effort. Take all of the information in problem 6 above, and input the information in to Schedule A - Itemized Deductions. A copy of a blank Schedule A is attached to the Homework Assignment 3 assignment. Please input your answers directly in the form and upload the completed form. SCHEDULE A (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 or 1040-SR Medical and Dental Expenses Taxes You Paid Interest You Paid Caution: Your mortgage interest deduction may be limited. See instructions. Casualty and Theft Losses Itemized Deductions OMB No. 1545-0074 Go to www.irs.gov/Schedule for instructions and the latest information. Attach to Form 1040 or 1040-SR. 2022 Attachment Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Your social security number Sequence No. 07 Other Itemized Deductions Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions). 2 Enter amount from Form 1040 or 1040-SR, line 11 2 3 Multiply line 2 by 7.5% (0.075)... 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- 5 State and local taxes. a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box. b State and local real estate taxes (see instructions). c State and local personal property taxes d Add lines 5a through 5c.. e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately). 6 Other taxes. List type and amount: 7 Add lines 5e and 6. 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box a Home mortgage interest and points reported to you on Form 1098. See instructions if limited. b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address. c Points not reported to you on Form 1098. See instructions for special rules d Reserved for future use e Add lines 8a through 8c. 9 Investment interest. Attach Form 4952 if required. See instructions. 10 Add lines 8e and 9. Gifts to Charity Caution: If you made a gift and got a benefit for it, see instructions. 13 Carryover from prior year 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions.. 12 Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500. Total Itemized Deductions 18 1 3 For Paperwork Reduction Act Notice, see the Instructions for Form 1040. 5a 5b 5c 5d 5e 6 8a 8b 8c 8d 8e 9 11 14 Add lines 11 through 13. 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions.. 16 Other-from list in instructions. List type and amount: 12 13 10 Cat. No. 17145C 14 15 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040 or 1040-SR, line 12. 17 If you elect to itemize deductions even though they are less than your standard deduction, check this box. 16 Schedule A (Form 1040) 2022