Question
Calculated itemized Deductions. Robert and Jean Snyder have an adjusted gross income of $100,000 for 2021. Their expenses for 2021 are as follows: Prescription drugs-$2,300*
Calculated itemized Deductions. Robert and Jean Snyder have an adjusted gross income of $100,000 for 2021. Their expenses for 2021 are as follows:
Prescription drugs-$2,300*
Medical Insurance Premiums-5,900
Doctor and dental bills paid-3,000*
Eyeglasses (regular and sunglasses for Robert -1,200
Hospital and clinic bills paid-1,450*
Property taxes paid on home-5,500
State income taxes paid:
Remaining 2019 tax liability - 125
Withheld from wages during year 4,000
State and local income taxes paid:
Amount paid on new automobile-800
Amount paid on new wide screen television-280
Personal property taxes paid-100
Interest on home mortgage**- 4,750
Interest paid on personal auto loan- 1,100
Interest paid on credit card purchases-400
Interest paid on E.F. Hutton margin account***-120
Cash contributions to church-2,000
Fair Market value of Hightech Corp. stock contributed to church (purchased for 1,000 three years ago) -5,000
Labor union dues paid by Robert-200
Qualifying education costs (tuition for MBA) paid by Jean - 8,000
Safe deposit box rental (for stocks and bonds) - 50
Fee paid accountant for preparation of 2020 state and federal tax returns-350
*These amounts are net of insurance reimbursements received during 2021
** This mortgage was created at the time the home was purchased
***This investment interest expense is related to the production of 1,500 of net investment income
The Snyders drove their personal automobile 500 miles for medical and dental treatment and an additional 1,000 miles in connection with charitable services performed for the church. Assuming Robert and Jean are both under age 40, lived in Virginia for the entire year, and plan to file a joint tax return, determine their total itemized deductions. If a tax form is used for the computations, complete Schedule A (Form 1040).
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