Rene Rogers has adjusted gross income of $40,000. She has medical expenses of $5

ID: 2581549 • Letter: R

Question

Rene Rogers has adjusted gross income of $40,000. She has medical expenses of $5,000 and $3,000 of miscellaneous itemized deductions subject to the two-percent-of-AGI limit. In addition, she has a casualty loss of $6,000 and state income taxes of $1,500. Compute the deductible amounts of these items for regular tax purposes. Rene Rogers has adjusted gross income of $40,000. She has medical expenses of $5,000 and $3,000 of miscellaneous itemized deductions subject to the two-percent-of-AGI limit. In addition, she has a casualty loss of $6,000 and state income taxes of $1,500. Compute the deductible amounts of these items for regular tax purposes.

Explanation / Answer

Particulars

working note

Medical

($5000-10%AGI)

$1,000

Miscellaneous

($3000-2%AGI)

$2,200

Casualty

($6000-$100-10%AGI)

$1,900

State income tax

$1,500