For calendar year 2015, Jon and Betty Hansen (ages 59 and 60) file a joint retur
ID: 2493683 • Letter: F
Question
For calendar year 2015, Jon and Betty Hansen (ages 59 and 60) file a joint return reflecting AGI of $280,000. They incur the following expenditures:
Medical expenses before AGI floor
$30,000
Casualty loss (not covered by insurance) before statutory floors
30,000
Interest on home mortgage
10,000
Interest on credit cards
800
Property taxes on home
13,000
Charitable contributions
17,000
State income tax
15,000
Tax return preparation fees
1,200
What is the amount of itemized deductions the Hansens may claim?
Medical expenses before AGI floor
$30,000
Casualty loss (not covered by insurance) before statutory floors
30,000
Interest on home mortgage
10,000
Interest on credit cards
800
Property taxes on home
13,000
Charitable contributions
17,000
State income tax
15,000
Tax return preparation fees
1,200
What is the amount of itemized deductions the Hansens may claim?
Explanation / Answer
Particulars Amount Itemized Deduction Medical Expenses Before AGI Floor $30,000 Less: 10 % of AGI (280000) -$28,000 $2,000 Casuality Loss $30,000 Less: -$100 Less: 280000*10% -$28,000 $1,900 Interest on Home Mortgage $10,000 $10,000 Property Taxes on Home $13,000 $13,000 Charitable Contribution: (limited upto 50% of AGI) $17,000 $17,000 State Income Tax $15,000 $15,000 Tax Preparation Fees $1,200 Less: 2% of AGI (2%*280000) = 5600 Limited to 1200 -$1,200 $0 Itemized Deduction $58,900
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