Question

Molly Whitman is a single taxpayer under the age of 65 and has adjusted gross income (AGI) in 2019 equal to $215,000. She reported the following financial information pertaining to her 2019 activities:

a) Molly incurs $6,800 of qualified medical expenses in 2019.

b) Molly's state income tax withholdings for 2019 equal $6,100.

c) In 2019, Molly was due a refund of $725 for overpaying her 2018 state taxes. She elected to have this overpayment applied toward her 2019 state tax liability. She expects to owe $5,600 in state income taxes for 2019.

d) Molly paid $550 in personal property taxes based on the state's estimate of the value of her car.

e) Molly owns her home and paid $6,530 of property taxes on the value of her residence.

f) The estimated value of Molly's home is $635,000. Her home mortgage loan equals $390,000. Molly paid $25,750 in mortgage interest on this loan during 2019. Molly also has a small vacation cottage in upstate New York. Her cottage is valued at $204,000. She also has a mortgage on this residence in the amount of $63,000. During 2019, Molly paid $12,600 in mortgage interest on the loan associated with this property. Both loans are secured by the relevant residences.

What is Molly's medical expense deduction for 2019?

$16,125

$6,800

$9,325

$0

What is Molly's total state income and property tax deduction for 2019?

$10,000

$13,180

$7,080

$13,905

Calculate Molly's taxable income for 2019.

$201,820

$201,095

$166,650

$207,920

Answer 1

Answer of * Molly's medical Expense deduction for 2019: The IRs allows all taxpayers to deduct the total qualified anveimbursed medical care Expenses for the yeong that exceeds lot of their adjusted gross income, in 2019. - your adjusted gross income. (AGI) is your Hasta ble income minus any adjustments to income suchaj deducation, contributions to a traditional IRA and student loan interest AGI = $215000X 10% = $21500 you can see medical care Expenses is not more than 10%. AGA, So, molly's made cel Expenses decluction for dolg will be NIL 60)

l option o is correct ! * Molly's total state income & Property tar deduction:- 1 single filers can deduct up to the full $10,000 molly's total state and property tax deduction is, $ 550 + $ 6550 = $ 7080 i option 'e 'is correel answa a molly's -laxable income for dol9:- : molly's fascable income for 2019 = adjusted grass income - - state Es propcity face = $215000 - $7080 = $ 207420 is option D is correct answer!