Liberty Tax Service
Online Basic Income Tax
Course.
Lesson 8
1
Homework Chapter 7
HOMEWORK ONE: What is the amount of the earned
income credit in the following situations? They have
no investment income over $2,950.
1. Married filing jointly, two qualifying children, Earned
Income - $16,528,AGI - $16,693 $4,824
2. Head of Household, one qualifying child, Earned
Income - $26,000, AGI -$25,849 $1,274
3. Single, age 24, no qualifying child, Earned Income $8,925, AGI - $9,000 $0
4. Married Filing Separately, age 27, Earned Income $6,700, AGI - $6,723 $0
2
Homework Chapter 7
HOMEWORK TWO:
Gerald T. (born 6/8/1967) and Belle M. Harrison (born
12/12/1971) are married and live at 1220 Torrence
Ave. Boulder, CO, 80302. Mrs. Harrison’s niece Greta
S. Borg (242-44-2224, born 7/7/2000) has lived
with them all year and they provided all of her
support.
The Harrisons pay for after school care for Greta so
Gerald can work as an optician and Belle can go to
her job as a desk clerk in a motel. In 2008, they paid
$300 to Tot World (EIN 22-7744333), 4349
Brunswick Blvd., Boulder, CO 80312 for Greta.
Gerald and Belle did not itemize their deductions for
2008.
Prepare a 2008 tax return for Gerald and Belle.
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Homework Chapter 7
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Homework Chapter 7
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Homework Chapter 7
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Homework Chapter 7
Homework 2
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Homework Chapter 7
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Homework Chapter 7
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Homework Chapter 7
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Homework Chapter 7
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Homework Chapter 7
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Homework Chapter 7
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Homework Chapter 7
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Homework Chapter 7
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Chapter 8: Itemized Deductions
Chapter Content
Itemized Deductions
Medical and Dental Expenses
Taxes You Paid
Interest You Paid
Gifts To Charity
Other Miscellaneous Deductions
Key Ideas
Objectives
Compare Standard Deduction to Itemized Deductions
Learn About Deductible and Nondeductible Medical
and Dental Expenses
Learn About Which Taxes Paid Which Are Deductible
Determine What Interest Paid is Deductible
Recognize Deductible Charitable Contributions
Identify Other Miscellaneous Deductions
21
Itemized Deductions
Itemized deductions
1. If the total amount of your itemized deductions
is higher than your standard deduction, you will
probably want to itemize.
2.
Reduces your AGI and lowers tax liability.
3.
You are subject to a limit on certain itemized
deductions if your adjusted gross income (AGI)
is more than $156,400 (or $78,200 if MFS).
4.
Report itemized deductions on Schedule A; the
amount from line 29 of Schedule A is entered on
line 40 of Form 1040.
22
Itemized Deductions
Deductions you may be able to claim include:
Medical and dental expenses
Taxes you paid
Interest you paid
Gifts to charity
Casualty and theft losses
Job expenses and most other miscellaneous
deductions
 Other miscellaneous deductions






23
Schedule A
Itemized Deductions
24
Schedule A
Itemized Deductions
25
Medical and Dental Expenses
You can include medical expenses you pay for
YOURSELF and for:
 Your spouse.
 Dependents claimed on your return.
 Others who could have been claimed
as dependents except they had gross
income of $3,500 or more, or they
filed a joint return.
26
Medical and Dental Expenses
Medical and dental expenses that exceed
7.5% of your AGI are deductible.
Note: You may want to determine 7.5% of
your AGI before adding all of the expenses
up to see if your medical expenses are
likely to exceed this amount.
Schedule A
27
Medical and Dental Expenses – Problem 1
Chico’s adjusted gross income is $25,000 and
7.5% of that amount is $1,875. He paid medical
and dental expenses of $2,000 which he reports
on Schedule A. He has $125 ($2,000 - $1,875)
as deductible medical and dental expenses on
Schedule A.
If his medical and dental expenses had been
$1,500 would he have medical deductions on
Schedule A?
Yes or No?
28
Medical and Dental Expenses – Problem 1
Chico’s adjusted gross income is $25,000 and
7.5% of that amount is $1,875. He paid medical
and dental expenses of $2,000 which he reports
on Schedule A. He has $125 ($2,000 - $1,875)
as deductible medical and dental expenses on
Schedule A.
If his medical and dental expenses had been
$1,500 would he have medical deductions on
Schedule A?
No
Because medical and dental expenses must
exceed 7.5% of AGI.
29
Medical and Dental Expenses
Below are medical and dental expenses you can and cannot deduct:
30
Transportation

Transportation expenses incurred primarily
for, and essential to, medical care are
deductible.

Standard rate is 19 cents a mile for miles
driven Jan 1 through Jun 30 and 27 cents a
mile for miles driven Jul 1 through Dec 31
or can deduct actual out-of-pocket
expenses.

Do not deduct depreciation, insurance,
general repair, and maintenance expenses.

Deduct tolls and parking fees in either case
31
Transportation – Problem 1
Chris drove 1,000 miles for medical reasons
from 1/1/2008 to 6/30/2008 and 800
miles from 7/1/2008 to 12/31/2008. He
used his car and his actual expenses were:
 $370 for gas
 $10 for oil
 $20 for tolls and parking.
Should Chris use actual expenses or standard
mileage for deducting his transportation
expenses?
a. Actual Expenses
b. Standard Mileage
32
Transportation – Problem 1
Chris drove 1,000 miles for medical reasons from 1/1/2008 to
6/30/2008 and 800 miles from 7/1/2008 to 12/31/2008.
He used his car and his actual expenses were
 $370 for gas
 $10 for oil
 $20 for tolls and parking.
Should Chris use actual expenses or standard mileage for
deducting his transportation expenses?
b. Standard Mileage
His actual expenses total $380 ($370 gas + $10 oil). If he
uses the standard mileage amount, his total expense is
$406 (1,000 x 19 cents/mile = $190 plus 800 x 27
cents/mile = $216). He will use $426 ($406 plus $20 for
tolls and parking) for his car expense along with his other
medical expenses because it is more than the $400 ($380
plus $20 for tolls and parking) he figured for his actual
expenses.
33
Transportation
 Other transportation expenses you can
deduct are bus, taxi, train, plane fares, or
ambulance services.
 The transportation expenses of a parent to
accompany a child who requires medical
care are deductible.
34
Lodging
The cost of lodging and meals at a hospital or similar
institution can be deducted if the main reason for being
there is for medical care.
You can include as part of your medical expenses the cost of
lodging not provided by the medical facility if all of the
following requirements are met:
a.
b.
c.
d.
Lodging primarily essential to medical care
Medical care provided by doctor in a medical care facility
Lodging is not extravagant
No significant element of personal pleasure, recreation,
or vacation in the travel away from home
The amount you include in medical expenses for lodging
cannot be more than $50 for each night for each person.
The cost of lodging for the person accompanying the
patient is deductible. Meals under these circumstances
are not deductible.
35
Lodging – Problem 1
Claudia took her 8-year-old son, Ramos, to a
medical center to undergo tests. They stayed at
a motel for three nights while the medical tests
were run. The motel cost $70 per night and their
meals totaled $120. How much, if any, can
Claudia deduct for medical expense?
a. $120
b.
$0
c. $330
d. $210
36
Lodging – Problem 1
Claudia took her 8-year-old son, Ramos, to a medical
center to undergo tests. They stayed at a motel for
three nights while the medical tests were run. The
motel cost $70 per night and their meals totaled
$120. How much, if any, can Claudia deduct for
medical expenses?
d. $210
Claudia can deduct $210 ($70 x 3 nights) for lodging.
She and Ramos each have a $50 per night limit. The
$120 for meals cannot be deducted.
37
Lodging
 Cost of living in a retirement or nursing
home is deductible for yourself, spouse,
or dependent if there because of
availability of medical care.
 Home improvements not increasing the
value of your home but required for
medical conditions are deductible.
38
Lodging – Problem 2
Raymond has severe asthma. His doctor
recommended he add central air conditioning to
his house. The equipment and installation cost
$3,200. An appraiser assessed a $1,500 increase
in the value of his house as a result of the air
conditioning.
How much, if any, can Raymond deduct for home
improvements due to a medical condition?
a. $3,200
b. $1,700
c. $1,500
39
Lodging – Problem 2
Raymond has severe asthma. His doctor recommended
he add central air conditioning to his house. The
equipment and installation cost $3,200. An appraiser
assessed a $1,500 increase in the value of his house as
a result of the air conditioning.
How much, if any, can Raymond deduct for home
improvements due to a medical condition?
b. $1,700
Raymond can deduct $1,700 ($3,200-$1,500) as a
medical expense this year along with any cost for
operating and maintaining the central air
conditioning every year for as long as it is needed
medically.
40
Insurance Premiums
Insurance premiums you pay for policies that
cover medical care are deductible.
Policies can provide payment for medical and
dental expenses, prescription drugs,
eyeglasses, and replacement of contact
lenses.
If you have long-term care insurance, the
part of the premium that can be deducted on
Schedule A depends on the age of the
insured.
41
Weight Loss Programs
Uncompensated amounts you pay for participation
in a weight-loss program as a treatment for a
specific disease (including obesity) diagnosed
by a physician are deductible.
The cost of purchasing diet food items is not
deductible.
Weight-loss programs to improve your general
health or appearance do not qualify and are
regarded as nondeductible personal expenses.
42
TAXES YOU PAID
In order for a tax to be deductible by you, the tax must
be imposed on you and must be paid by you during
your tax year. You report deductible taxes on lines 5
through 9 of Schedule A.
Schedule A
43
TAXES YOU PAID
Deductible taxes include:





State and local income taxes
General sales taxes
Real estate taxes
Personal property taxes
Foreign Income Taxes
44
TAXES YOU PAID
State and Local Income Taxes
These taxes include tax withheld from your
salary, estimated payments, and the tax
paid for an earlier year.
45
TAXES YOU PAID
General sales taxes.
You can elect to deduct state and local general
sales taxes instead of state and local income
taxes. You cannot deduct both.
To figure your deduction you can use either of the
following methods:
1. Actual state and local general sales tax and
sales tax on motor vehicles or the optional
sales tax table
(You must keep your actual receipts showing
general sales taxes paid if you use this method.
2. IRS has website for calculating sales tax
http://apps.irs.gov/app/stdc/
46
TAXES YOU PAID
Real estate taxes.
These are taxes on real property, such as your
house or other land that you own that was not
used for business.
The taxes must be based on the assessed value of
the property.
Generally, real estate taxes are deductible when
paid. With an escrow account, you can deduct
the real estate tax the year the lending
institution pays it.
47
TAXES YOU PAID
Personal property taxes.
Taxes that state and local governments
charge on the value of personal property are
deductible. An example is personal property
taxes based on the value of your car or boat.
In some states, a portion of the cost of
personal vehicle registration may be
deductible if part of the fee is based on the
value of your car.
48
TAXES YOU PAID
Foreign Income Taxes
Generally, you can take either a deduction or a
credit for income taxes imposed on you by a
foreign country or a U.S. possession.
49
TAXES YOU PAID
Taxes and fees that are generally NOT deductible
include:
 Federal taxes such as income tax, social
security (FICA), and Medicare
 Driver’s, marriage, hunting, or pet licenses
 Water and sewer taxes
 Taxes on alcoholic beverages, cigarettes, and
tobacco
 Taxes on gasoline, diesel, and other motor
fuels used in a non-business vehicle
 Utility taxes - telephone, gas, electricity, etc.
 Fines or penalties
50
TAXES YOU PAID
51
TAXES YOU PAID
For 2008, if you are not able to use the real
estate taxes paid because you do not
have enough deductions to itemize, you
may be able to claim up to $500 ($1,000
if MFJ) as an addition to the standard
deduction. If you paid real estate taxes
and are unable to itemize deductions,
use the worksheet is Table 8-3 to
determine the amount of your standard
deduction.
52
TAXES YOU PAID
53
INTEREST YOU PAID
 Report interest you paid on lines 10-14 of
Schedule A
 Amount you pay for the use of borrowed
money
 Types include home mortgage interest
and investment interest
 Qualified mortgage insurance premiums
Schedule A
54
INTEREST YOU PAID
Home Mortgage Interest
Report home mortgage interest on line 10 of Schedule
A if you receive a Form 1098, Mortgage Interest
Statement.
If you do not receive a Form 1098, report the home
mortgage interest on line 11 of Schedule A.
55
INTEREST YOU PAID
56
INTEREST YOU PAID
POINTS
Points specifically paid for the use of money
are considered prepaid interest.
Generally cannot deduct full amount of
points in year paid.
57
INTEREST YOU PAID
You can fully deduct points in the year you pay them only if all
these apply:
 You itemize deductions
 Your loan is secured by your main home
 Paying points is an established business practice where loan
was made
 Points paid were not more than points generally charged in
area
 You use cash method of accounting
 Points were not paid in place of amounts that ordinarily are
stated separately on settlement statement
 You use your loan to buy or build your main home
 Points were computed as percentage of principal amount of
mortgage
 Amount is clearly shown on settlement statement as points
charged for mortgage
 Funds you provided at or before closing plus any points seller
58
paid were at least as much as points charged.
INTEREST YOU PAID
 Points paid by the seller are deductible by
the buyer.
 Points paid to refinance a mortgage are
generally not deductible in full the year
you pay them.
 Report points reported on Form 1098 on
line 10 of Schedule A; if not reported on
Form 1098, enter them on line 12 of
Schedule A.
59
INTEREST YOU PAID – Problem 1
Tom and Debra Mazur bought a house costing
$200,000 in 2008. They paid 2 points to
the lender. The seller paid 1 point to the
lender. How much can the Mazurs deduct
on their 2008 return?
a. $2,000
b. $4,000
c. $6,000
60
INTEREST YOU PAID – Problem 1
Tom and Debra Mazur bought a house costing
$200,000 in 2008. They paid 2 points to the
lender. The seller paid 1 point to the lender.
How much can the Mazurs deduct on their 2008
return?
c. $6,000
$6,000 in points
$200,000 x 2% = $4,000 plus
$200,000 x 1% = $2,000
The basis of their house is reduced by $2,000
(seller’s points they deducted) to $198,000.
61
Mortgage Insurance Premiums
 Premiums paid for qualified mortgage insurance
are treated as deductible mortgage interest. The
deduction does not apply to any contract issued
before January 1, 2007 and does not apply to
any amounts paid or accrued after December 31,
2010.
 Qualified mortgage insurance providers include
the Veterans Administration, the Federal Housing
Administration or the Rural Housing
Administration and private mortgage insurance.
Box 4 of Form 1098 may show the amount of
premiums paid in 2008.
62
INTEREST YOU PAID
Investment Interest
 Deduct investment interest to the
extent of investment income.
 Excess of investment interest can be
carried over to future years.
 You generally use Form 4952 to
determine amount of deductible
investment interest.
63
GIFTS TO CHARITY






Charitable contributions can be deducted
only if you make them to a qualified
organization.
Can be cash or non-cash.
Report on lines 16-19 of Schedule A.
Generally cannot exceed 50% of your
AGI.
Non-cash contributions are reported on
line 17 of Schedule A.
Refer to Table 8-5 for examples of
qualified contributions and organizations
and those that do not qualify.
64
GIFTS TO CHARITY
Schedule A
65
GIFTS TO CHARITY
66
GIFTS TO CHARITY
Property
 The fair market value of property you give to a
charitable organization can be deducted; it is
determined on the date of the gift.
 If property has increased in value during time you
owned it, deduct your basis in it or the property’s
FMV on date of gift; if property has decreased in
value during the time you owned it, usually deduct
its FMV (e.g. used clothing, furniture, books,
appliances)
Example:
Ed bought land in 1996 for $8,000. He donated the
land to his church in 2008 when it was worth
$12,000. Ed can deduct $12,000.
67
GIFTS TO CHARITY

Clothing or household items donated must
be in good, used condition. An item not in
good used condition can be deducted if it is
more than $500 and a qualified appraisal is
included.

Used vehicles, boats and airplanes that have
a claimed value of $500 or more must have a
written acknowledgement from the
organization. The deduction is the smaller of
the FMV on the date of the contribution or
the gross proceeds received from the sale.
68
GIFTS TO CHARITY

The deduction is not limited if the
organization gives or sells the vehicle to a
needy individual, makes significant use of
the vehicle or makes material
improvements before transferring it.

A used car guide can help determine the
FMV of the vehicle.
69
GIFTS TO CHARITY – Problem 1
Brad donates his 2001 Jeep Wrangler, which he
bought new for $22,000 in 2001. A used car
guide indicates the FMV for his car is $9,950.
Brad receives a Form 1098-C which shows that
the car was sold for $7,000. How much can he
deduct on his return?
a. $9,950
b. $7,000
c. $2,950
70
GIFTS TO CHARITY – Problem 1
Brad donates his 2001 Jeep Wrangler, which he
bought new for $22,000 in 2001. A used car
guide indicates the FMV for his car is $9,950.
Brad receives a Form 1098-C which shows that
the car was sold for $7,000. How much can he
deduct on his return?
b. $7,000
He can deduct $7,000 and he must attach Form
1098-C to his return.
71
GIFTS TO CHARITY
If your contributions of noncash items are
over $500 in any year, you are required to
file Form 8283, Noncash Charitable
Contributions to give more information
about them.
72
GIFTS TO CHARITY
Limit On Deductions
 Amount of deduction may be limited to
20%, 30%, or 50% of AGI depending on
type of property and type of charitable
organization.
 Can carry over contributions exceeding
AGI limit and deduct excess in each of
next 5 years until used up
73
GIFTS TO CHARITY
Record Keeping
Keep records of all your cash and noncash
contributions for the year; if under $250,
proof can be canceled check, receipt, etc.;
if $250 or more, proof must be written
acknowledgment (see Publication 526 for
more details).
74
OTHER MISCELLANEOUS DEDUCTIONS
 Casualty and theft losses, job expenses
and most other miscellaneous deductions
are covered in Chapter 13.
 Line 28 of Schedule A takes care of other
miscellaneous deductions including:
gambling losses up to amount of winnings,
impairment-related work expenses of
persons with disabilities,
repayments of more than $3,000 under a
claim of right.
75
Itemized Deductions
KEY IDEAS
Itemized deductions are reported on Schedule A of
Form 1040. Itemized deductions include:
 Medical and dental expenses
 Taxes paid
 Home mortgage and certain investment interest
paid
 Charitable contributions
 Casualty and theft losses (covered in a later
chapter)
 Miscellaneous itemized deductions (some covered
in a later chapter)
76
Itemized Deductions
KEY IDEAS
Medical and dental expenses that exceed 7.5 percent of
adjusted gross income are deductible.
Either state and local income taxes or general sales tax can
be deducted, but not both.
Mortgage interest can be deducted if you are legally liable for
the debt.
Regardless of the amount, you cannot deduct a cash
contribution unless you keep as a record of the
contribution a bank record, such as a cancelled check.
You cannot deduct a contribution of clothing or household
items unless the items are in good used condition or better.
You compare your total itemized deductions to your standard
deduction and enter the larger amount on line 40 of Form
1040.
77
Itemized Deductions
CLASSWORK 1: True or False.
1.
You may benefit from itemizing your deductions if you paid
mortgage interest and real estate taxes on your home.
2.
You cannot deduct general sales tax on your tax return.
3.
The standard rate is 20 cents per mile for a medical travel
expense.
4.
If you are married filing separately and your spouse
itemizes his/her deductions, you too must itemize your
deductions even if they are below the standard deduction.
5.
You can claim a cash charitable donation of $5 even if you
do not have a receipt. .
6.
Points paid by the seller are deductible by the buyer as
interest.
7.
The fair market value is determined on the date of the gift.
78
Itemized Deductions
CLASSWORK 1: True or False.
8.
Your total medical and dental expense must exceed 7.5%
of your total income to take the deduction.
9.
Real estate taxes are deductible on your return when
actually paid.
10. Your total charitable contributions may have limited
deductibility if they are over 10% of your AGI.
11. You can deduct a weight loss program as a medical
deduction if it is a treatment for a disease diagnosed by
your doctor .
12. Credit card interest for personal expenses is a deductible
interest.
13. Any meal costs you pay at a hospital are deductible if the
principal reason you are there is to receive medical care .
79
Itemized Deductions
CLASSWORK 1: True or False.
14. You can deduct what you paid for clothing in good used
condition or better that you donate to a qualified
charitable organization.
15. You can deduct the mortgage interest you paid on your
son’s home even if you are not legally liable for the loan.
16. A church raffle ticket that you purchased can be deducted
as a charitable donation.
17. Health insurance premiums paid by your employer are fully
deductible as a medical expense .
18. If you used the money to purchase a car, the points paid to
refinance your home mortgage are fully deductible in the
year you paid them.
19. You can deduct the full cost of a nursing home even if you
reside there for personal reasons.
80
Itemized Deductions
CLASSWORK 1: True or False.
20. Federal income tax is deductible on Schedule A.
21. State tax withheld from your salary is reported to
you in box 17 of Form W-2.
22. Tuition to a nonprofit school is a deductible
charitable contribution.
23. Money given to a needy person can be deducted as
a charitable contribution.
24. In addition to your state and local income tax
withholding, you can deduct on your 2008 Schedule
A, any prior year’s state income tax owed that you
paid in 2008.
81
Itemized Deductions
CLASSWORK 1: True or False.
1.
You may benefit from itemizing your deductions if you paid
mortgage interest and real estate taxes on your home. T
2.
You cannot deduct general sales tax on your tax return. F
3.
The standard rate is 20 cents per mile for a medical travel expense.
F
4.
If you are married filing separately and your spouse itemizes
his/her deductions, you too must itemize your deductions even if
they are below the standard deduction. T
5.
You can claim a cash charitable donation of $5 even if you do not have a receipt.
F
6.
Points paid by the seller are deductible by the buyer as interest. T
7.
The fair market value is determined on the date of the gift. T
82
Itemized Deductions
CLASSWORK 1: True or False.
8.
Your total medical and dental expense must exceed 7.5%
of your total income to take the deduction. F
9.
Real estate taxes are deductible on your return when
actually paid. T
10. Your total charitable contributions may have limited
deductibility if they are over 10% of your AGI. F
11. You can deduct a weight loss program as a medical
deduction if it is a treatment for a disease diagnosed by
your doctor . T
12. Credit card interest for personal expenses is a deductible
interest. F
13. Any meal costs you pay at a hospital are deductible if the
principal reason you are there is to receive medical care .
T
83
Itemized Deductions
CLASSWORK 1: True or False.
14. You can deduct what you paid for clothing in good used
condition or better that you donate to a qualified
charitable organization. F
15. You can deduct the mortgage interest you paid on your
son’s home even if you are not legally liable for the loan. F
16. A church raffle ticket that you purchased can be deducted
as a charitable donation . F
17. Health insurance premiums paid by your employer are fully
deductible as a medical expense . F
18. If you used the money to purchase a car, the points paid to
refinance your home mortgage are fully deductible in the
year you paid them. F
19. You can deduct the full cost of a nursing home even if you
reside there for personal reasons. F
84
Itemized Deductions
CLASSWORK 1: True or False.
20. Federal income tax is deductible on Schedule A. F
21. State tax withheld from your salary is reported to you
in box 17 of Form W-2. T
22. Tuition to a nonprofit school is a deductible charitable
contribution. F
23. Money given to a needy person can be deducted as a
charitable contribution. F
24. In addition to your state and local income tax
withholding, you can deduct on your 2008 Schedule A,
any prior year’s state income tax owed that you paid in
2008. T
85
Itemized Deductions
CLASSWORK 2:
 Greg K. (SSN 033-21-8196, born 10/10/1942) and Beth M.
(SSN 212-63-8338, born 12/11/1951) Smith are filing a
joint return and they have no dependents. They live in
Colorado City, Texas 79512 and their AGI (line 38 of Form
1040) is $44,000. Greg and Beth have no other income and
they did not purchase a motor vehicle or purchase an
aircraft, boat, home or home-building materials.
 They drove 1,030 miles for doctor visits. They drove 600
miles from 1/1/2008 to 6/30/2008 and 430 miles from
7/1/2008 to 12/31/2008. Beth does volunteer work at the
church every week and she drove 250 miles for this
purpose. They have written records of their automobile
mileage.
 Complete their Schedule A using the following additional
information. Texas does not have a personal income tax.
The local general sales tax for Colorado City is 2%.
86
Itemized Deductions
CLASSWORK 2:
Eyeglasses (Greg)
$
Medical Insurance
260
Root Canal (Greg)
$
$ 2,550
Church donations
$
25/week
for 50 weeks
Prescription drugs
$
Goodwill FMV of clothes in
good used condition
$
300
Home mortgage interest
$ 4,350
Benefit for a neighbor
$
130
Real estate taxes
$ 2,800
State gas tax
$
450
Over-the-counter drugs
$
150
Hip surgery (Beth)
*reimbursed $2,850
$ 6,000*
Bingo – cost of cards
$
500
185
425
Assuming that their deductions were the same, would
they still want to itemize if Beth had been born in
1941?
87
Itemized Deductions
CLASSWORK 2 - Answer
88
Itemized Deductions
CLASSWORK 2 - Answer
89
Itemized Deductions
CLASSWORK 2 - Answer
90
Itemized Deductions
91
Itemized Deductions
When both taxpayers are over 65, the standard deduction is
$13,000 plus $1,000 for real estate taxes totaling $14,000 which is
higher than their itemized deductions.
92
Questions and Answers
93