Diego, age 56, a school teacher, is married and has decided to file married, filing separately. His wife plans to itemize her deductions. He has the following income and expenses in 2020: Salary income $31,000 Gain on sale of investments 5,000 Cash prize 750 Jury fees 50 Credit card interest 345 Property tax on personal sailboat 800 Medical expenses 10,614 Interest paid on his student loans 1,800 Teacher supplies for his second grade elementary class 500 State income tax 2,100 Federal income tax $6,400 a.  Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible". Credit card interest   Property tax on personal sailboat   Medical expenses   Teacher supplies for his second grade elementary class   State income tax   Federal income tax   The standard deduction for married filing separate is $12,400. b.   Diego's gross income is? And his AGI is? c.   Compute the amount of his total itemized deductions (after any limitations)?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
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ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter1: Federal Income Taxation—an Overview
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Problem 64P: Leroy and Amanda are married and have three dependent children. During the current year, they have...
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Diego, age 56, a school teacher, is married and has decided to file married, filing separately. His wife plans to itemize her deductions. He has the following income and expenses in 2020:

Salary income $31,000
Gain on sale of investments 5,000
Cash prize 750
Jury fees 50
Credit card interest 345
Property tax on personal sailboat 800
Medical expenses 10,614
Interest paid on his student loans 1,800
Teacher supplies for his second grade elementary class 500
State income tax 2,100
Federal income tax $6,400

a.  Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".

Credit card interest  
Property tax on personal sailboat  
Medical expenses  
Teacher supplies for his second grade elementary class  
State income tax  
Federal income tax  

The standard deduction for married filing separate is $12,400.

b.   Diego's gross income is? And his AGI is?

c.   Compute the amount of his total itemized deductions (after any limitations)?

d.   Compute his taxable income?

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