You are a tax preparer. Review the expenses submitted by the client and assist your staff with the completion of itemized deductions. For expenses that are not allowed, explain why these expenses are disallowed. AGI is $45,000.
Client submitted expenses:
1. Tax preparation fees from the prior year $ 250
2. Personal property taxes $ 500
3. Reimbursed health insurance premiums $1,500
4. Charitable contributions (cash only) $ 200
5. Prescriptions $ 150
6. Mortgage interest $3,850
7. Contact lens $ 200
8. State income taxes withheld $1,675
9. Unreimbursed medical expenses $ 875
10. Services provided qualified non-profit $1,000