Janet is completing her federal income taxes for the year and has identified the amounts listed here. How much can she rightfully deduct?
• AGI: $42,000
• Medical and dental expenses: $1,100
• State income taxes: $1,000
• Mortgage interest: $7,000
• Charitable contributions: $1,250

Question

Janet is completing her federal income taxes for the year and has identified the amounts listed here. How much can she rightfully deduct? 
• AGI: $42,000
• Medical and dental expenses: $1,100
• State income taxes: $1,000
• Mortgage interest: $7,000
• Charitable contributions: $1,250

Quizplus · Accepted Answer

Janet can deduct state income taxes ($1,000), mortgage interest ($7,000), and charitable contributions ($1,250) for a total of $9,250. Medical and dental expenses are deductible only to the extent they exceed 7.5% of AGI, which in this case they do not ($42,000 * 7.5% = $3,150).

Janet Is Completing Her Federal Income Taxes for the Year