Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2021. Bart incurred some significant medical expenses during the year related to an unexpected surgery. They present you with the following information:

If they file separately, Bart and Elizabeth will split the real estate tax and mortgage interest deductions equally. Write Bart and Elizabeth a letter in which you make and explain a recommendation on filing status for 2021. Bart and Elizabeth reside at 2003 Highland Drive, Durham, NC 27707.

Transcribed Image Text:

Salary (Bart) Salary (Elizabeth) Interest income Deductions for AGI Medical expenses State income tax Real estate tax Mortgage interest Unreimbursed employee expenses Bart $38,000 400 2,400 10,427 900 1,200 Elizabeth $110,000 1,200 14,000 3,358 11,800 Joint $2,200 5,800 4,200