Sam and Diane are completing their federal income taxes for the year and have identified the amounts listed here.How much can they rightfully deduct?
• AGI: $80,000
• Medical and dental expenses: $9,000
• State income taxes: $3,500
• Mortgage interest: $9,500
• Charitable contributions: $1,000

Question

Quizplus · Accepted Answer

Deductions include the following: Medical & dental in excess of 7.5% of AGI + State income tax + Mortgage interest + Charitable contributions = ($9,000 - {$80,000 × .075}) + $-3,500 + $9,500 + $1,000 = $-17,000.

Sam and Diane Are Completing Their Federal Income Taxes for the Year