Question

• Roberta Wilson is 63 years old and single .

• Her grandson, Jacob, is 9 years old and lived with her all year . Roberta paid all household expenses and Jacob qualifies as her dependent. • Roberta and Jacob are both U .S . citizens and have valid Social Security numbers .

• Roberta claimed EIC for Jacob 2 years ago, but he only lived with her for 2 months and the credit was disallowed .

• Roberta had wage income of $45,000 in 2018 .

• She is not sure if she should itemize or take the standard deduction .

• Roberta paid the following:

– $7,200 mortgage interest for a qualified home purchased in 2010.

– In 2018, she took out a home equity loan for $8,000 to pay off her credit cards . She paid interest in the amount of $650 on this loan .

– $9,010 for real estate taxes .

– $1,762 for state income taxes withheld in 2018 .

– Unreimbursed doctor bills in the amount of $2,200 .

– Unreimbursed prescription drugs for $250 .

– Health club dues of $600 .

– A statement received from her church showing donations made throughout the year totaling $4,500 .

– Receipts for donations of furniture and clothing in good, used condition to Goodwill . The total estimated fair market value is $500 .

– $50 donated to a friend in need via their Go-Fund-Me account .

– $45 paid in 2018 on her 2017 balance due state income tax return .

32. If Roberta itemizes, what amount is she able to deduct for state income and real
estate taxes?
a. $9,010
b. $10,000
c. $10,772
d. $10,817
33. If Roberta chooses not to itemize, how much is her standard deduction?
a. $12,000
b. $13,600
c. $18,000
d. $19,600
34. Which of Roberta’s expenses qualify as itemized deductions on Schedule A?
(Select all that apply.)
a. $50 donated to a friend in need
b. $45 state income tax paid in 2018
c. $7,200 mortgage interest on loan used to purchase home
d. $650 interest on home equity loan used to pay off credit cards
35. Roberta’s earned income credit was disallowed 2 years ago. How does that impact
her 2018 tax return?
a. There is no impact.
b. She must file a Form 8862, Information To Claim Earned Income Credit After
Disallowance, with her return.
c. She is disallowed for 5 years.
d. She is disallowed forever.

Answer 1

Ans :-

32 ) :-

The answer is Option b) $10000

Explanation :-

$10000 is the reasoning top for state salary and land imposes in year 2018

33 ) :-

The answer is Option a ) $12000 .

Explanation :-

$12000 as standard reasoning in the event that you don't order.

34 ) :-

The answer is Option b) and c) .

Explanation :-

• State salary charges, contract enthusiasm on home advance .
• Magnanimous commitment is permitted as conclusion just to qualified association and not to companion.
• Enthusiasm on home value advance isn't permitted as conclusion on the off chance that it is for individual living like satisfying Visas.

35 ) :-

The answer is Option b .