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Bob and Jane Smith are married and have two dependent children, Cindy, age 16, and Bobby, age 14. For 2016, their adjusted gross income (AGI)

Bob and Jane Smith are married and have two dependent children, Cindy, age 16, and Bobby, age 14. For 2016, their adjusted gross income (AGI) is $138,000. They had deductions consisting of:

Doctor and dentist visits

$5,100

Prescription medicine

1,900

Nonprescription medicines

500

Eyeglasses

1,200

Surgery for Bobby

5,400

Miles driven for medical purposes - 300 miles

Dust elimination system (Cindy suffers from allergies and her physician recommended that the Smiths install a dust elimination system in their home. The system cost $3,700 and the increase in the value of their residence was determined to be $1,200. As a result of installing the system, their utilities increased $300 for the year.)

State income taxes withheld from wages

9,5 00

Estimated state income tax payments

4/15/2016

6/15/2016

9/15/2016

1/15/2017

500

500

500

500

Personal property taxes on their autos

600

Real estate taxes on personal residence

3,200

Interest on qualified residence

7,300

Interest on a home-equity loan (It is on a $50,000 loan that they took out when their house was valued at $350,000 and the original mortgage loan balance was $275,000.)

2,000

Cash charitable contributions (with appropriate substantiation)

4,600

Miles driven for charitable purposes 250 miles

Household goods (all in good or better condition) donated to Goodwill (the goods cost $1,600 and the fair market value is $400)

Cash given to homeless (or street) people so they can buy food

250

This table can be copied and pasted into Excel to provide a starting place.

Summarize your answer showing how you got them, in a table similar to the following:

Deductible Medical

Deductible Taxes

Deductible Interest

Deductible Charitable

Total Itemized Deductions

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