Question

Advanced Scenario 5: Archie Hamilton Interview Notes • Archie Hamilton is 45 years old and single Archie had wage income of $55,000. He an He also had gambling winnings of $1.00 not sure if he should itemize or take the standard deduction. • He is not sure if he should . Archie paid the following: - $5,200 qualifying home mortgage interest. - $9,507 for real estate taxes. - $5,040 for state income taxes withheld in 2019. Unreimbursed doctor and dentist bills in the amount of $7,000. - Unreimbursed prescription drugs for $14. - Vitamins for $120. - A statement received from his church showing donations made throughout the year totaling $1,200. - Receipts for donations of furniture and clothing in good, used condition to Goodwill. The total estimated fair market value is $100. - Tax preparation fee of $315 for his 2018 tax return. - $50 paid in 2019 on his 2018 balance due state income tax return. - $45 investment expense - $250 in gambling losses

Answer 1

Part 12

Option C

C. gambling losses

Gambling losses are allowed on the schedule A as itemized deduction.

Part 10

Option A

True

According to TCJA act, medical expense in excess of 7.5% of AGI on the Schedule A as itemized deduction.

Part 11

Option C

C. $10000

According to TCJA act, local and state taxes up to $10000 are allowed as itemized deduction on schedule A.