Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

lan, 37, and Isabella, 36, are married and file a joint tax return. They have one child, Ingrid (Isabella's daughter from a prior marriage and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
lan, 37, and Isabella, 36, are married and file a joint tax return. They have one child, Ingrid (Isabella's daughter from a prior marriage and is claimed as a dependent (QC) on lan & Isabella's joint return). In 2020, Isabella and lan had the following items: Salary (Isabella): $83,000 Salary (lan): $13,000 Scholarship: $6,500 ($2,500 used to pay lan's tuition at an eligible educational institution, $1,000 used to buy required textbooks, and $3,000 used to pay room and board) room and board) California Paid Family Leave (PFL): $2,000 Inheritance from Isabella's father: $100,000 Child support payments received from Isabella's ex-husband: $6,000 lan and Isabella paid the following expenses in 2020: Federal income taxes withheld on wages: $9,000 State & local income taxes: $8,000 Property taxes on principal residence: $5,000 Sales tax: $1,000 Interest on credit card used for personal travel: $4,500 Interest on $350,000 mortgage used to purchase principal residence: $3,000 Interest on $20,000 home-equity loan used to improve their principal residence: $1,000 Student loan interest: $2,000 Charitable contribution (cash): $1,000 Unreimbursed employee business expenses (job supplies): $750 lan and Isabella's home is worth $550,000. They have proper records to substantiate all expenses, including the charitable contribution. What is the amount of lan and Isabella's total itemized deductions in 2020 (including deductible taxes from previous question and all other itemized deductions)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing For Managers The Ultimate Risk Management Tool

Authors: K. H. Spencer Pickett, Jennifer M. Pickett

1st Edition

0470090987, 978-0470090985

More Books

Students also viewed these Accounting questions