Question
Interview Notes Roberta Wilson is 63 years old and single . Her grandson, Jacob, is 9 years old and lived with her all year .
Interview Notes
Roberta Wilson is 63 years old and single .
Her grandson, Jacob, is 9 years old and lived with her all year . Roberta paid all household expenses and Jacob qualifies as her dependent. Roberta and Jacob are both U .S . citizens and have valid Social Security numbers .
Roberta claimed EIC for Jacob 2 years ago, but he only lived with her for 2 months and the credit was disallowed .
Roberta had wage income of $45,000 in 2018 .
She is not sure if she should itemize or take the standard deduction .
Roberta paid the following:
$7,200 mortgage interest for a qualified home purchased in 2010.
In 2018, she took out a home equity loan for $8,000 to pay off her credit cards . She paid interest in the amount of $650 on this loan .
$9,010 for real estate taxes .
$1,762 for state income taxes withheld in 2018 .
Unreimbursed doctor bills in the amount of $2,200 .
Unreimbursed prescription drugs for $250 .
Health club dues of $600 .
A statement received from her church showing donations made throughout the year totaling $4,500 .
Receipts for donations of furniture and clothing in good, used condition to Goodwill . The total estimated fair market value is $500 .
$50 donated to a friend in need via their Go-Fund-Me account .
$45 paid in 2018 on her 2017 balance due state income tax return .
32 . If Roberta chooses to itemize her deductions, she is able to take a deduction of $10,772 for state income and real estate taxes .
a . True
b . False 33 . If Roberta chooses not to itemize, her standard deduction is $19,600 .
a . True
b . False
34 . Roberta is able to deduct interest paid on her home equity loan and the donation she made to a friend in need .
a . True
b . False 35 . Roberta must file Form 8862, Information To Claim Earned Income Credit After Disallowance, to claim the earned income tax credit after the disallowance .
a . True
b . False
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