Alan,a calendar year married taxpayer,files a joint return for 2011.Information for 2011 includes the following: Alan's allowable itemized deductions for 2011 are:

Question

Alan,a calendar year married taxpayer,files a joint return for 2011.Information for 2011 includes the following:  Alan's allowable itemized deductions for 2011 are:

Quizplus · Accepted Answer

The standard deduction for a joint return in 2011 was $11,600. Since the taxpayer's itemized deductions exceed the standard deduction, they should claim itemized deductions. The total of the listed deductions is $48,600, but certain deductions are subject to limitations. Medical expenses are generally limited to the amount in excess of 7.5% of adjusted gross income (AGI). Assuming AGI is at least $162,000 ($150,000 + $12,000), the limitation on medical expenses is $12,150 [7.5% x ($162,000 - $12,000)]. State and local taxes are limited to $10,000. Therefore, the total allowable itemized deductions are $37,200 ($48,600 - $12,150 - $10,250).

Alan,a Calendar Year Married Taxpayer,files a Joint Return for 2011