Advanced Scenario 8: Roberta Wilson Interview Notes • Roberta Wilson is 63 years old and single. • Her grandson, Jacob, is 9 years old and lived with her all year. Roberta paid all household expenses and Jacob qualifies as her dependent. • Roberta and Jacob are both U.S. citizens and have valid Social Security numbers. • Roberta claimed EIC for Jacob 2 years ago, but he only lived with her for 2 months and the credit was disallowed. • Roberta had wage income of $45,000 in 2018. • She is not sure if she should itemize or take the standard deduction. • Roberta paid the following: - $7,200 mortgage interest for a qualified home purchased in 2010. - In 2018, she took out a home equity loan for $8,000 to pay off her credit cards. She paid interest in the amount of $650 on this loan. - $9,010 for real estate taxes. - $1,762 for state income taxes withheld in 2018. - Unreimbursed doctor bills in the amount of $2,200. - Unreimbursed prescription drugs for $250. - Health club dues of $600. - A statement received from her church showing donations made throughout the year totaling $4,500. - Receipts for donations of furniture and clothing in good, used condition to Goodwill. The total estimated fair market value is $500. - $50 donated to a friend in need via their Go-Fund-Me account. - $45 paid in 2018 on her 2017 balance due state income tax return.

Advanced Scenario 8: Test Questions 32. If Roberta itemizes, what amount is she able to deduct for state income and real estate taxes? a. $9,010 b. $10,000 c. $10,772 d. $10,817

Advanced Scenarios Retest Questions 33. If Roberta chooses not to itemize, how much is her standard deduction? a. $12,000 b. $13,600 c. $18,000 d. $19,600 34. Which of Roberta's expenses qualify as itemized deductions on Schedule A? (Select all that apply.) a. $50 donated to a friend in need b. $45 state income tax paid in 2018 c. $7,200 mortgage interest on loan used to purchase home d. $650 interest on home equity loan used to pay off credit cards

Roberta's earned income credit was disallowed 2 years ago. How does that impact her 2018 tax return? a. There is no impact. b. She must file a Form 8862, Information To Claim Earned Income Credit After Disallowance, with her return. c. She is disallowed for 5 years. d. She is disallowed forever.