Mitch,who is single and age 66 and has no dependents,had AGI of $100,000 in 2016.His potential itemized deductions were as follows.

Medical expenses (before percentage limitation)
$15,000
State income taxes
3,000
Real estate taxes
7,000
Mortgage (qualified housing and residence)interest
9,000
Cash contributions to various charities
4,000
Unreimbursed employee expenses (before percentage limitation)
4,300

What is the amount of Mitch's AMT adjustment for itemized deductions for 2016?
A)$14,800
B)$16,800
C)$19,300
D)$25,800

Question

Mitch,who is single and age 66 and has no dependents,had AGI of $100,000 in 2016.His potential itemized deductions were as follows.
​
Medical expenses (before percentage limitation)
$15,000
State income taxes
3,000
Real estate taxes
7,000
Mortgage (qualified housing and residence)interest
9,000
Cash contributions to various charities
4,000
Unreimbursed employee expenses (before percentage limitation)
4,300
​
What is the amount of Mitch's AMT adjustment for itemized deductions for 2016?
A)$14,800
B)$16,800
C)$19,300
D)$25,800

Quizplus · Accepted Answer

The AMT adjustment for itemized deductions is the amount by which the taxpayer's itemized deductions exceed the AMT standard deduction. For 2016, the AMT standard deduction for a single taxpayer is $54,300. Mitch's itemized deductions total $42,300 ($15,000 + $3,000 + $7,000 + $9,000 + $4,000 + $4,300). Therefore, his AMT adjustment for itemized deductions is $14,800 ($42,300 - $54,300).

Mitch,who Is Single and Age 66 and Has No Dependents,had