Question
Morgan, age 67, is a cash basis taxpayer, and has wage income of $95,000. Additional facts for 2019 taxable income are as follows: Alimony Paid
Morgan, age 67, is a cash basis taxpayer, and has wage income of $95,000. Additional facts for 2019 taxable income are as follows:
Alimony Paid for a divorce settled in 2015 | $9,000 |
Deductible charitable contributions to qualified charities | 5,000 |
Personal Homeowners Insurance | 1,500 |
Interest Income from Chase Bank | 1,750 |
Unreimbursed Travel Expenses- Incurred as an employee of a business | 7,000 |
Interest paid on home mortgage on personal residence | 2,200 |
State income tax withheld from wages | 3,200 |
Amazon.com gift card received from her sister on her birthday | 1,000 |
Real estate taxes paid on personal residence 6,000
Insurance reimbursement of 2019 medical expenses 4,800
Tuition payment for niece at private high school 2,000
Inheritance from deceased wealthy aunt 17,000
Legal fees paid to evict tenant at Business Rental Property 2,500
Total Qualified Medical Expenses out of pocket before insurance 15,000
Repair to Windows for Business Rental Property 2,750
Real Estate Taxes on Business Rental Property 4,000
Rental Property Income 17,500
Fine Paid to City for Noise Violations at Rental Property 1,000
State Sales Tax from Sales Tax Table 4,400
Miles driven for qualified medical treatment 1500 miles
A. What is Morgans AGI?
B. Assume Morgans AGI is $80,000, what is the amount of her Schedule A Itemized Deductions?
C. Assume Morgans AGI is $80,000 and her filing status is Head of Household, what is her taxable income using the Itemized Deductions computed in B?
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