• Taxation Problem:
• Roman is 41 years old and files as Head of Household. He is not blind.
• His 2020 adjusted gross income (AGI) is $48,624, which includes gambling winnings of $200.
• Roman would like to itemize his deductions this year.
• Roman brings documentation for the following expenses:
  • $7,257 Hospital and doctor bills
  • $600 Contributions to Health Savings Account (HSA)
  • $2,325 Long Term Care Insurance premiums before age limitation applied
  • $2,970 State withholding (higher than Roberts calculated state sales tax deduction)
  • $273 Personal property taxes based on value of vehicle
  • $700 Friends personal GoFundMe campaign to help with COVID-19
  • $250 Cash contributions to the Red Cross
  • $100 FMV of clothing in good condition donated to the Salvation Army (Robert purchased clothing for $800)
  • $7,025 Mortgage interest
  • $797 Real estate tax
  • $260 Mortgage Insurance Premiums (PMI)
  • $120 Homeowners association fees
  • $3,500 Gambling losses

• 11. If Roman chooses to itemize, which of the following is he eligible to claim as a deduction on Schedule A?

a. $700 GoFundMe donation

b. $3,500 Gambling losses

c. $120 Homeowners Association fees

d. $260 Mortgage Insurance Premiums (PMI)

12. If Roman chooses not to itemize, what is the amount that he can deduct as an above-the-line charitable contribution adjustment in 2020?

a. $250

b. $300

c. $350

d. $1,050