a- Bill would like some tax benefits for his investment expenses incurred this y

Question

a-

Bill would like some tax benefits for his investment expenses incurred this year. His AGI is $190,100. Currently, his expenses consist of: (1) $1,010 investment advice fees, (2) $1,510 unreimbursed employee business expenses (a miscellaneous itemized deduction), and (3) $610 tax return preparation fees. How much more, if any, must Bill spend for investment expenses this year before he receives any tax benefit?

More than $500

Zero, Bill is already receiving a benefit.

More than $672

None of these

More than $900

B-

Jamison's gross tax liability is $7,600. Jamison had $2,850 of available credits and he had $4,305 of taxes withheld by his employer. What is Jamison's taxes due (or taxes refunded) with his tax return?

$3,295 taxes due.

$4,750 taxes due.

$445 tax refund.

$445 taxes due.

Explanation / Answer

Solution.

More than $672

A. Must Bill spend for investment expenses this year before he receives any tax benefit.

= $190,100 x .02 = $3,802;

= $1,010 + $1,510 + $610 = $3,130;

= $3,802 - $3,130 = $672

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