Problem 2: Deductions for personal activities On December 15th 2020, George and Jane Murray determine they have an estimated AGI of $100,000. In addition they report the following expenditures: State Taxes $10,000 Qualified Medical Expenses 9,000 Qualified Residence interest (assume fully deductible) 14,000 On the same day George is offered an additional project which would pay him an additional $20,000. He would also have an additional $2,000 in state taxes withheld from that income at the time of payment. He has the option of completing the project during the last week of December or first week of January and will be paid immediately upon completion.

What is the effect on taxable income for 2020 if George completes the project in December? January? What would you recommend that he do?