Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Maria, age 32, earns $60,000 working in 2022. She has no other income. Her medical expenses for the year total $6,000. During the year,
Maria, age 32, earns $60,000 working in 2022. She has no other income. Her medical expenses for the year total $6,000. During the year, she suffers a casualty loss of $9,500 when her apartment is damaged by flood waters (part of a Federally declared disaster area). Mara contributes $6,000 to her church and pays $4,000 of state income taxes. On the advice of her friend, Maria is trying to decide whether to contribute $5,000 to a traditional IRA. Complete the table to show the effect the IRA contribution would have on Maria's itemized deductions. With IRA Contribution Without IRA Contribution Gross income Contribution to IRA AGI 0-0 00000 (5,000) 00000 Itemized deductions: Charitable contribution State income taxes Medical expenses Casualty loss Total itemized deductions The $5,000 IRA contribution would I contribution reduces her taxable ind decrease Increase Maria's itemized deductions by $ As a result, the $5,000 IRA
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started