Asked by Zeina Samarneh on Jul 02, 2024
Verified
Antonio reported the following itemized deductions on his 2017 tax return.His AGI for 2017 was $95,000.The mortgage interest is all qualified mortgage interest to purchase his personal residence.For AMT,compute his total adjustment for itemized deductions.
Medical expenses (before 10.0% of AGI floor) $8,500 State income taxes$6,500Home mortgage interest $14,500Charitable contributions $3,500 Miscellaneous itemized deductions (before 2% of AGI floor) $2,800\begin{array}{lr}\text {Medical expenses (before \( 10.0 \% \) of AGI floor) }&\$8,500\\\text { State income taxes}&\$6,500\\\text {Home mortgage interest }&\$14,500\\\text {Charitable contributions }&\$3,500\\\text { Miscellaneous itemized deductions (before } 2 \% \text { of AGI floor) }&\$2,800\end{array}Medical expenses (before 10.0% of AGI floor) State income taxesHome mortgage interest Charitable contributions Miscellaneous itemized deductions (before 2% of AGI floor) $8,500$6,500$14,500$3,500$2,800
Itemized Deductions
Expenses that taxpayers can subtract from their taxable income, detailed on Schedule A of the tax return.
AGI
Adjusted Gross Income, a measure of income calculated from your gross income and used to determine how much of your income is taxable.
Qualified Mortgage Interest
Interest paid on a mortgage that is eligible for tax deduction within the limits set by the IRS.
- Compute adjustments for itemized deductions under AMT.
Verified Answer
Total Reqular Tax AMT Adjustment Medical expenses $8,500$0$0$0 State income taxes 6,5006,50006,500 Mortgage interest 14,50014,50014,5000 Charitable contrib. 3,5003,503,5000 Misc. I.D. 2,8009000900\begin{array}{lrrrr}&\text { Total }&\text { Reqular Tax }&\text { AMT }&\text { Adjustment }\\\text { Medical expenses } & \$ 8,500 & \$ 0 & \$ 0&\$0\\\text { State income taxes } & 6,500& 6,500 & 0 &6,500\\\text { Mortgage interest } & 14,500 & 14,500 & 14,500 &0\\\text { Charitable contrib. } & 3,500& 3,50 & 3,500 &0\\\text { Misc. I.D. } & 2,800 & 900 & 0&900\\\end{array} Medical expenses State income taxes Mortgage interest Charitable contrib. Misc. I.D. Total $8,5006,50014,5003,5002,800 Reqular Tax $06,50014,5003,50900 AMT $0014,5003,5000 Adjustment $06,50000900
Total AMT adjustment for itemized deductions $7,400\text { Total AMT adjustment for itemized deductions }\quad\quad\$7,400 Total AMT adjustment for itemized deductions $7,400
Learning Objectives
- Compute adjustments for itemized deductions under AMT.
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