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Schedule A: Itemized Deductions Line 1: Medical Amount spent 4,100 4,200 Line 2: AGI 60,000 200,000 Line 3: 7.5% of AGI (60K * 7.5%) 4,500
Schedule A: Itemized Deductions | ||
Line 1: Medical Amount spent | 4,100 | 4,200 |
Line 2: AGI | 60,000 | 200,000 |
Line 3: 7.5% of AGI (60K * 7.5%) | 4,500 | 15,000 |
Line 4: Medical deduction (4,100 below threshold | 0 | 0 |
Line 5a: State income or sales tax | 2,580 | 8,300 |
Line 5b: Real estate taxes | ||
Line 5c: Personal property taxes | 0 | 7,700 |
Line 5d: Total taxes | ||
Line 5e: Smaller of 5d or 10,000 | ||
Line 6: Other Taxes | ||
Line 7: Line 5e + Line 6 | ||
Line 8a: Home mortgage interest | 0 | 11,900 |
Lines 8b,c,d (all zero) | 0 | 0 |
Line 8e: Line 8a + zero | 0 | 11,900 |
Line 9: Investment interest | ||
Line 10: Lines 8e + Line 9 or Total interest | ||
Line 11: Gifts to charity by cash or check | 940 | 2,140 |
Line 12: Other than cash or check | ||
Line 13: Carryover from prior year | ||
Line 14: Add Lines 11 to 13: total Charity | ||
Line 15: Casualty | ||
Line 16 Other | ||
Line 17: Total itemized | ||
Greater of Line 17 or standard | ||
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3. There are two distinct situations: Situation A Single 60,000 4,100 Status, no children Wage Income Medical costs paid State Income taxes paid Property taxes paid Mortgage Interest Charitable contributions Situation B Single 200,000 4,200 8,300 7,700 11,900 2,140 2,580 0 0 940 a. What is the 2021 tax owed for the following taxpayer for each situation? b. For each situation, how much did the taxpayer save in taxes due to making the charitable contribution? C. For each situation, what is the tax rate based on? Taxable income (tax owed over tax able income) Marginal rate (marginal rate) o O 3. There are two distinct situations: Situation A Single 60,000 4,100 Status, no children Wage Income Medical costs paid State Income taxes paid Property taxes paid Mortgage Interest Charitable contributions Situation B Single 200,000 4,200 8,300 7,700 11,900 2,140 2,580 0 0 940 a. What is the 2021 tax owed for the following taxpayer for each situation? b. For each situation, how much did the taxpayer save in taxes due to making the charitable contribution? C. For each situation, what is the tax rate based on? Taxable income (tax owed over tax able income) Marginal rate (marginal rate) o OStep by Step Solution
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