6.2.6

6.2.6

Use the following information to answer Parts (a), (b), and (c). Molly Whitman is a single taxpayer under the age of 65 and has adjusted gross income (AGI) in 2019 equal to $215,000. She reported the following financial information pertaining to her 2019 activities: a) Molly incurs $6,800 of qualified medical expenses in 2019. b) Molly's state income tax withholdings for 2019 equal $6,100. c) In 2019. Molly was due a refund of $725 for overpaying her 2018 state taxes. She elected to have this overpayment applied toward her 2019 state tax liability. She expects to owe $5.600 in state income taxes for 2019. d) Molly paid $550 in personal property taxes based on the state's estimate of the value of her car. e) Molly owns her home and paid $6,530 of property taxes on the value of her residence. f) The estimated value of Molly's home is $635,000. Her home mortgage loan equals $390.000. Molly paid $25,750 in mortgage interest on this loan during 2019. Molly also has a small vacation cottage in upstate New York. Her cottage is valued at $204.000. She also has a mortgage on this residence in the amount of $63.000. During 2019, Molly paid $12,600 in mortgage interest on the loan associated with this property. Both loans are secured by the relevant residences. Part (a) What is Molly's medical expense deduction for 2019? A. $6,800 B. $9,325 C. $0 D. $16,125 Part (b) What is Molly's total state income and property tax deduction for 2019? A. $13,180 B. $13,905 C. $10,000 D. $7,080 Part (c) Calculate Molly's taxable income for 2019. A. $207,920 B. $201,820 C. $166,650 D. $201,095