Leticia is a single person who makes $45,000 per year.This year she paid $2,000 in student loan interest,$1,500 in medical expenses,$7,200 in rent and $4,800 in car loan payments.She contributes $3,600 per year to her 401(k)plan at work.Give her some tax advice.

Question

Quizplus · Accepted Answer

Since Leticia has several expenses that could be deductible, it is worth calculating her taxes using both the standard deduction and itemized deductions to see which one yields a greater deduction. It is important to note that the standard deduction for single filers in 2021 is $12,550, so if her itemized deductions are less than that, it would be best to take the standard deduction.

Leticia Is a Single Person Who Makes $45,000 Per Year