Comprehensive Tax Project - Itemized Deductions

Reba Dixon is an architectural designer who reported W-2 wages of $56,180 for 2018. She is single. During the year, she reported the following expenditures and transactions:

$2,000 for medical expenses, including doctors, x-rays, and prescription drugs, related to a broken ankle that she sustained in a biking accident. She drove a total of 260 miles for treatment. She also purchased crutches costing $100. She spent $1,050 for various vitamins, protein supplements, cold tablets and other over-the-counter medications during the year, and paid $1,600 for a weight-loss program run by a local hospital (as prescribed by her doctor).

$3,400 for her health insurance coverage through her employer (pre-tax dollars). She was reimbursed by the insurance provider for $1,500 of the medical expenses related to her broken ankle. She had Lasik eye surgery during the year and paid $2,000 for the surgery, which was not covered by her health insurance.

$2,900 for dental work and braces to correct an over-bite problem.

$5,110 in property taxes on her personal residence.

$2,590 state income taxes and $2,000 in state sales tax.

$2,810 property taxes on a vacant lot downtown that she is holding, in hopes of selling at a high price.

$3,600 in property taxes on a rental house near the community college that Reba owns. She regularly rents the property to students, and collected $10,000 rent income during the year.$8,400 interest on her home mortgage loan. She also paid $1,000 of interest on a home equity loan; sheused the proceeds of the loan to pay off some credit card debt, go on a nice vacation during the summer,and put a down-payment on a new car.

$302 of interest on her VISA card, the balance of which she paid off with the home equity loan.

$3,100 interest on the rental house that she owns near the community college.

$650 of student loan interest.

$500 of investment interest expense. Reba's investments paid her $360 in interest income and $1,480 in qualified dividends. She does not wish to make any special elections with regards to investment interest.

$16,200 cash contributions to State University, as well as stock valued at $17,700 that was given to her church. She had purchased the stock 2 years ago at a cost of $14,800. She contributed approximately 40 hours of architectural work to a local charity and valued her time at $5,600; she also purchased $250 of raffle tickets from the charity. At the end of the year, she moved to a smaller apartment and donated furniture to Habitat for Humanity. The furniture cost her $5,500 and she estimated the thrift store (current fair market value) to be $3,100.

$5,500 contribution to her ROTH IRA.REQUIRED:

First calculate Reba's AGI for 2018. (You may verify this amount with me before you proceed.) Prepare her Schedule A on a form printed from the IRS website.