Tracy is single and had an adjusted gross income of $ 33,400 in 2015. Tracy also has the following items : unreimbursed medical expenses $ 3,909, state income tax $1869, interest expense first mortgage $ 3625, interest expense second mortgage $ 1236, real estate tax $740, interest expense car loan $424, interest expense credit card $ $990, gift to charity $286. How much may Tracy claim as itemized deductions?
The amount Tracy may claim in itemized deductions is $
Answer = Tracy may claim in itemized deductions is $ 8325
Working notes for the above answer is as under
| Particular | Amount in $ |
| unreimbursed medical expenses =3909 -(33400*10%) |
569 |
| State income tax…. | 1869 |
| Interest expense (first mortgage) | 3625 |
| Interest expense ( second mortgage)… | 1236 |
| Real estate tax…. | 740 |
| Gifts to charity…. | 286 |
| Total | 8325 |
Note:
$ 8325 is the deduction
Here credit card and car loan interest is not deductible,
Medical expenses, to the extent that the expenses exceed 10% of the taxpayer’s
state income tax for the current year is deductible as are both mortgages, real estate tax, and charitable contributions
