Janet and her husband, Bob, are facing a totally new income tax situation this year. She is a corporate accountant and Bob is an engineer. Their gross salaries total $89,000. Janet and Bob graduated from four-year universities six years ago and are still paying off large college loans. She is attending school part-time now to prepare for the CPA exam. The Emmersons incurred considerable expenses in the process of adopting an infant this year, and also have the ongoing expense of daycare. In January of last year they closed on their new home. Although trained as an accountant, Janet's work has not involved income tax preparation. Help them consider the following questions.
-The Emmersons

Question

Quizplus · Accepted Answer

Since the Emmersons have incurred considerable expenses for adoption and daycare, it may be beneficial for them to itemize their deductions rather than take the standard deduction. It is recommended that they calculate their taxes both ways (itemizing and taking the standard deduction) to see which results in a lower tax liability. The fact that Janet is preparing for the CPA exam may also make her better equipped to handle itemizing their deductions.

Janet and Her Husband, Bob, Are Facing a Totally New