Question
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 |
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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.) |
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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 |
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Household goods (all in good or better condition) donated to Goodwill (the goods cost $1,600 and the fair market value is $400) |
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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 |
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Deductible Taxes |
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Deductible Interest |
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Deductible Charitable |
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Total Itemized Deductions |
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