Michael is 49 years old and files as single. His 2021 adjusted gross income (AGI) is $49,500, which includes gambling winnings of $1,000. Michael would like to itemize his deductions this year. Michael brings documentation for the following expenses: $8,200 Hospital and doctor bills $700 Contributions to Health Savings Account (HSA) $2,500 Long Term Care Insurance premiums before age limitation applied $3,400 State withholding (higher than Michael’s calculated state sales tax deduction) $300 Personal property taxes based on value of vehicle $400 Friend’s personal GoFundMe campaign $275 Cash contributions to the Red Cross $100 Fair market value of clothing in good condition donated to the Salvation Army (Michael purchased clothing for $800) $7,500 Mortgage interest $820 Real estate tax $230 Mortgage Insurance Premiums (PMI) on a home he purchased in 2017. $150 Homeowners association fees $2,000 Gambling losses 11. If Michael chooses to itemize, which of the following is he eligible to claim as a deduction on Schedule A? A. $400 Go Fund Me donation B. $700 Contributions to Health Savings Account (HSA) C. $150 Homeowner’s Association fees D. $230 Mortgage Insurance Premiums (PMI)

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 34P
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  • Michael is 49 years old and files as single.
  • His 2021 adjusted gross income (AGI) is $49,500, which includes gambling winnings
    of $1,000.
  • Michael would like to itemize his deductions this year.
  • Michael brings documentation for the following expenses:
    • $8,200 Hospital and doctor bills
    • $700 Contributions to Health Savings Account (HSA)
    • $2,500 Long Term Care Insurance premiums before age limitation applied
    • $3,400 State withholding (higher than Michael’s calculated state sales tax deduction)
    • $300 Personal property taxes based on value of vehicle
    • $400 Friend’s personal GoFundMe campaign
    • $275 Cash contributions to the Red Cross
    • $100 Fair market value of clothing in good condition donated to the Salvation
      Army (Michael purchased clothing for $800)
    • $7,500 Mortgage interest
    • $820 Real estate tax
    • $230 Mortgage Insurance Premiums (PMI) on a home he purchased in 2017.
    • $150 Homeowners association fees
    • $2,000 Gambling losses
11. If Michael chooses to itemize, which of the following is he eligible to claim as a
deduction on Schedule A?
 
     
 
 
     
  A. $400 Go Fund Me donation  
     
 
     
  B. $700 Contributions to Health Savings Account (HSA)  
     
 
     
  C. $150 Homeowner’s Association fees  
     
 
     
  D. $230 Mortgage Insurance Premiums (PMI)  
     
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