Question

65 What is the standard deduction for Brad who is 70, filing MFS and blind? Marks: 1 Choose one answer Which of the following statements is not true about limits on 2018 itemized deductions? Marks: 1 Choose one answer a Qualified medical expenses must be reduced by 75% of the AGI b. The deduction of state and local taxes paid is limited to $10,000 c. Depending on the type of contribution and recipient of the contribution, the deduction for charitable contributions is limited to 60% 50%, 30% or 20% of AGI d. The deduction for investment interest cannot exceed investment income and the deduction for gambling losses cannot exceed gambling winnings e At the bottom of Schedule A there is an overall limit on itemized deductions based on AGI and filling status

Answer 1

b. $13,300

Explanation:-

If you are age 65 or over, blind or disabled, you can tack on $1,300 to your standard deduction of $12,000 as a single filling status.

a. A qualified medical expenses must be reduced by 7.5% of the AGI

Explanation:-

• Unreimbursed Medical and Dental Expenses – This deduction is perhaps the most difficult – and financially painful – to qualify for. It's also a deduction that the new tax law changes for tax year 2017, the taxes you will file in April 2018. For tax years 2017 and 2018 only, taxpayers who incur qualified out-of-pocket medical and/or dental expenses that are not covered by insurance can deduct expenses that exceed 7.5% of their adjusted gross incomes. Starting with tax year 2019 (payable in April 2020), medical deductions return to their current level of 10%.