Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Michael is 49 years old and files as single. His 2021 adjusted gross income (AGI) is $49,500, which includes gambling winnings of $1,000. Michael would

image text in transcribed

Michael is 49 years old and files as single. His 2021 adjusted gross income (AGI) is $49,500, which includes gambling winnings of $1,000. Michael would like to itemize his deductions this year. Michael brings documentation for the following expenses: - $8,200 Hospital and doctor bills - $700 Contributions to Health Savings Account (HSA) - $2,500 Long Term Care Insurance premiums before age limitation applied - $3,400 State withholding (higher than Michael's calculated state sales tax deduction) - $300 Personal property taxes based on value of vehicle - $400 Friend's personal GoFundMe campaign - $275 Cash contributions to the Red Cross - $100 Fair market value of clothing in good condition donated to the Salvation Army (Michael purchased clothing for $800) - $7,500 Mortgage interest - $820 Real estate tax - $230 Mortgage Insurance Premiums (PMI) on a home he purchased in 2017. - $150 Homeowners association fees - $2,000 Gambling losses 1. Michael's mortgage insurance premium of $230 can be claimed as an itemized deduction on his Schedule A. a. True b. False 22. What amount of gambling losses is Michael eligible to claim as a deduction on his Schedule A

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

FINANCIAL & MANAGERIAL ACCOUNTING FOR DECISION MAKERS

Authors: Dyckman, Hanlon, Magee, Pfeiffer, Hartgraves, Morse

3rd Edition

1618532340, 9781618532343

More Books

Students also viewed these Accounting questions