Q- Aaron, age 55, has an adjusted gross income in 2014 of $30,000. His expenses

ID: 2497150 • Letter: Q

Question

Q- Aaron, age 55, has an adjusted gross income in 2014 of $30,000. His expenses are as follows:

Non-prescription medicine $100 Prescription medicine $500

Doctor visits $500

Weekly meal preparation for a diet plan $2,000 Removal of a benign facial mole $400

Contact lenses $500 Eyeglasses $200

Dental services $300

What is Aaron’s itemized deduction for medical expenses?

a. $2,000

b. $4,500

c. $1,500

d. $0

Q- During 2015, John, a self-employed individual, paid the following amounts:

Real estate tax on Michigan residence $3,800

State income tax 1,800

Real estate taxes on land in Puerto Rico (held as an investment) 1,100

Gift tax paid on gift to daughter 1,200

State sales taxes 1,750

State occupational license fee 300

Property tax on value of his automobile (used 100% for business) 500

What is the maximum amount John can claim as taxes in itemizing deductions from

AGI?

a. $6,650

b. $7,850

c. $6,700

d. $8,625

Aaron’s itemized deduction for medical expenses is a. $2,000

Prescription medicine + Doctor visits + Contact lenses + eyeglasses + Dental expenses

The maximum amount John can claim as taxes in itemizing deductions from AGI is a. $6,650

Real estate tax on Michigan residence + Real estate taxes on land in Puerto Rico + State sales taxes

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