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Scenario $4$: The Power $($and Limits$)$ of the Standard Deduction

Thomas and Jessica are married filing jointly with the following income and deductions:

Combined Wages: $$90,000$

Interest and Dividend Income: $$3,000$

Potential Itemized Deductions:

State and Local Taxes: $$7,000$

Medical Expenses $($exceeds AGI threshold$)$: $$11,000$

Charitable Contributions: $$4,000$

Questions:

Calculate their AGI if they take the standard deduction.

Calculate their AGI if they itemize.

Which option results in a lower tax liability?