Marla and Victor Zapata have the following eligible miscellaneous itemized deductions:

They have an adjusted gross income of $63,000 and other itemized deductions of $8,580.How much of the above miscellaneous expenses can they add to their other itemized deductions?

Question

Marla and Victor Zapata have the following eligible miscellaneous itemized deductions:
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They have an adjusted gross income of $63,000 and other itemized deductions of $8,580.How much of the above miscellaneous expenses can they add to their other itemized deductions?

Quizplus · Accepted Answer

The total amount of eligible miscellaneous deductions is $19,652. However, these deductions are only deductible to the extent that they exceed 2% of adjusted gross income (AGI). In this case, 2% of $63,000 is $1,260. Therefore, the amount of miscellaneous deductions that Marla and Victor can add to their other itemized deductions is $8,580 (their total itemized deductions) minus $1,260 (2% of their AGI) which equals $7,320.

Out of the given options, the closest amount to $7,320 is $3,706 (Option B). Therefore, Option B is the correct answer.

Marla and Victor Zapata Have the Following Eligible Miscellaneous Itemized