Lana, an employee of Compton University, paid $1,500 for professional journal subscriptions and $1,000 of membership dues to academic organizations. These unreimbursed employment-related expenses are Lana's only miscellaneous itemized deduction. Which of the following statements is false?

Question

Quizplus · Accepted Answer

All three statements are true.  If Lana's AGI (adjusted gross income) is $136,000 or more, she cannot deduct any miscellaneous itemized deductions, including the professional journal subscriptions and membership dues. If her AGI is less than $87,500, she can deduct miscellaneous expenses that exceed 2% of her AGI, which would be $1,750 in this case. If her AGI is between $87,500 and $136,000, she can only deduct the amount that exceeds 2% of her AGI, up to a maximum of $1,000. If her AGI is $42,000, she can deduct miscellaneous expenses that exceed $840 ($42,000 times 2%) up to a maximum of $2,500, which would include the $1,500 spent on professional journal subscriptions and $1,000 spent on membership dues.

Lana, an Employee of Compton University, Paid $1,500 for Professional