1. Janyce, a single taxpayer, has AGI of $125,000 and paid the following taxes this year.

State Income tax withholding	7,200
State income tax estimated payments	600
State Income tax refund (applied to this years tax)	800
State Automobile tax (bases on cars value)	1,900

• Calculate how much Janyce can deduct for taxes as an itemized deduction this year.

• Itemized Deduction:

2. Jack, who files married separate, has AGI of $45,000 and paid the following taxes this year.

State Income tax withholding	6,200
State income tax estimated payments	500
State Income tax refund (applied to this years tax)	1000
State Automobile tax (bases on cars value)	800

• Calculate how much Jack can deduct for taxes as an itemized deduction this year.

• Itemized Deduction:

• 3. This year, Major Healy paid $40,000 of interest on a mortgage on his home (he borrowed $800,000 to buy the residence in 2015; $900,000 original purchase price and value at purchase), $6,000 of interest on a $120,000 home-equity loan on his home (loan proceeds were used to buy antique cars), and $10,000 of interest on a mortgage on his vacation home (borrowed $200,000 to purchase the home in 2010). Major Healys AGI is $220,000.How much interest expense can Major Healy deduct as an itemized deduction?

• Interest deductible: