Decide what her a person should itemize his deductions or take the standard deduction in the following case. A person deductible expenditures are 8400 for intrest on a home mortgage 2100$ for contributions to charity and 647$ for state income taxes.His filing status entitles him to a standard deduction of 11,700.
Homework Answers
1) Taxpayer has two options:
A) Itemized deduction Or. B) Standard deduction
Taxpayer will opt out the higher of the two to reduce the taxes.
2) Deduction reduces the income that is subject to taxes.
3) Here,
| Standard Deduction | $ 11,700 |
| Itemized Deduction | $11,147 |
( $ 8400 + $ 2100 + $ 647 = $11,147)
4) In this case standard deductioo amount is more that that of itemized deduction , so he should take standard deduction.
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