Question
For calendar year 2019, Jon and Betty Hansen (ages 49 and 50) file a joint return reflecting total income (NOT AGI) of $310,000 before the
For calendar year 2019, Jon and Betty Hansen (ages 49 and 50) file a joint return reflecting total income (NOT AGI) of $310,000 before the following potential deductions. They incur the following expenditures: Medical expenses net of reimbursements $33,000 Personal casualty loss (not covered by insurance) before $100 and AGI floors, Federally declared disaster area 28,000 Interest on home mortgage, balance of mortgage < $750,000 12,000 Interest on credit cards 800 Student loan interest 2,400 Property taxes on home 9,000 State income tax 7,000 State sales tax 3,000 Charitable contributions 18,000 Gambling losses incurred (gambling winnings reported $5,000) 6,700 Bettys contribution to her Health Savings Account 1,500 Tax return preparation fees 1,200 a. Show the calculation of AGI starting with the total income shown above of $310,000. List and label each deduction FOR AGI that you are using to compute AGI. b. Show the calculation of the amount of itemized deductions the Hansens may claim. Please use the new 2019 AGI reduction for medical expenses as announced due to the Covid-19 outbreak. Be sure to label each! c. Show the calculation of the Hansens taxable income for 2019
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