Question
Hello, I am looking on a specific answer in the Chapter 18CB, Problem 1P of the Fundamentals of Federal Income Taxation. In the Section 63
Hello, I am looking on a specific answer in the Chapter 18CB, Problem 1P of the Fundamentals of Federal Income Taxation.
In the Section 63 of the IRS Code, says that the Taxpayer can elect to use Itemized Deductions or Standard Deduction. But in the answer was used a 10% deduction percentage of the taxpayer adjusted gross income and itemized deductions. It is possible to use both? Standard Deduction and the Itemized Deductions? In this specific question. The Taxpayer used 1,600 as itemized deductions and 2,000 as standard income deduction + 3,000 as single individual income deductions. Please, can you provide more details about the answer of the question a. Thank you,
Please below the problem and the question:
"Single Taxpayer in the current year has $20,000 of adjusted gross income, a single personal exemption, and the following allowable itemized deductions: $1,000 in interest, $500 in state income taxes, $1,500 in unreimbursed employee travel expenses, $200 in tax preparation fees, and $300 bar association dues.For simplicity, assume that there are no inflation adjustments after 1988.See sections 63(c)(4); 151(d)(4).
What is Taxpayers taxable income for the current year?"
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