West's adjusted gross income was $90,000. During the current year he incurred and paid the following: $$\begin{array} { | l | r | }
\hline \text { Professional journals } & \$ 2,000 \
\hline \text { Tax return preparation fee } & 1,000 \
\hline \text { Dues to professional organizations } & 1,500 \
\hline \text { Fees for will preparation (no taxadvice) } & 800 \
\hline \text { Life insurance premiums } & 1,400 \
\hline
\end{array}$$ None of the expenses were reimbursed. Assuming he can itemize deductions, how much should West claim as miscellaneous itemized deductions (after limitations have been applied)?

Question

West's adjusted gross income was $90,000. During the current year he incurred and paid the following: $$\begin{array} { | l | r | } 
\hline \text { Professional journals } & \$ 2,000 \
\hline \text { Tax return preparation fee } & 1,000 \
\hline \text { Dues to professional organizations } & 1,500 \
\hline \text { Fees for will preparation (no taxadvice) } & 800 \
\hline \text { Life insurance premiums } & 1,400 \
\hline
\end{array}$$ None of the expenses were reimbursed. Assuming he can itemize deductions, how much should West claim as miscellaneous itemized deductions (after limitations have been applied)?

Quizplus · Accepted Answer

The correct answer is A.The total miscellaneous itemized deductions are $4,500 ($2,000 + $1,000 + $1,500 + $800). However, only 2% of the AGI can be claimed as miscellaneous itemized deductions. 2% of $90,000 is $1,800. Therefore, West can claim $2,700 as miscellaneous itemized deductions ($4,500 - $1,800).

West's Adjusted Gross Income Was $90,000 None of the Expenses Were Reimbursed