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For calendar year 2020, William and Nan Rehnquist file a joint return reflecting AGI of $310,000. (This number has been correctly calculated, i.e., do not
For calendar year 2020, William and Nan Rehnquist file a joint return reflecting AGI of $310,000. (This number has been correctly calculated, i.e., do not adjust this number). Both William and Nan are employees of Court Corporation. Their items of expense are listed below.
- Calculate William and Nans itemized deductions. To receive credit, you must clearly document all calculations leading to your final answer. If any item below is not included in your calculation, please explain why and be specific.
- Based on your calculations, should William and Nan itemize deductions in 2020?
Doctor, dentist and hospital expenses | 13,450 |
Credit card interest | 1,260 |
Prescription medications | 1,800 |
Federal income taxes withheld in 2020 | 17,320 |
Home mortgage interest | 13,710 |
Medical insurance premiums (non-employer-provided policy) | 19,345 |
Tax return filing fees | 885 |
Medical insurance reimbursement received Dec. 2020 | 2,100 |
Add'l medical insurance reimbursement expected Jan. 2021 | 3,910 |
Personal casualty loss (not covered by insurance) in Federally declared disaster area | 35,050 |
Cost of alcohol rehabilitation for Nan | 5,235 |
Student loan interest | 4,680 |
Professional dues (umreimbursed) | 875 |
State income taxes withheld in 2020 | 12,400 |
State income taxes paid on April 14, 2020 for tax year 2019 | 3,240 |
Sales taxes paid | 7,055 |
Real estate taxes paid | 9,020 |
Fair market value of services provided to qualified charities | 2,390 |
Cash charitable contributions | 19,750 |
Alimony payment to William's ex-wife (divorce agreement executed 2005) | 5,900 |
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