John is a 36-year-old calendar-year taxpayer whose wife died in August of 2018. His eight year-old son lives with him. During 2018, he had salary income of $52,000, $600 of dividend income, and received $50,000 from the life insurance policy on his wife. He made a $2,000 contribution to his regular IRA and paid $9,800 for a hospital bill and $3,000 for a doctor bill for his deceased wife. He also paid $4,000 in mortgage interest, $800 in property taxes, $300 of credit card interest and $400 in job hunting expenses when he tried to find a better paying job in the same line of work in March. Determine John's income tax liability for 2018, before any allowable credits, if he itemizes his deductions. Should John consider using the standard deduction?

Question

Quizplus · Accepted Answer

The Answer of John is a 36-year-old calendar-year taxpayer whose wife died in August of 2018. His eight year-old son lives with him. During 2018, he had salary income of $52,000, $600 of dividend income, and received $50,000 from the life insurance policy on his wife. He made a $2,000 contribution to his regular IRA and paid $9,800 for a hospital bill and $3,000 for a doctor bill for his deceased wife. He also paid $4,000 in mortgage interest, $800 in property taxes, $300 of credit card interest and $400 in job hunting expenses when he tried to find a better paying job in the same line of work in March. Determine John's income tax liability for 2018, before any allowable credits, if he itemizes his deductions. Should John consider using the standard deduction?

John Is a 36-Year-Old Calendar-Year Taxpayer Whose Wife Died in August