Nick and Nancy

by | Sep 10, 2021 | Homework Help

Nick and Nancy (married filing jointly) engaged in the following transactions during 2018. Their AGI is $90,000. Determine their total itemized deductions.a. Nick works at ABC, Co. He had $9,000 in federal income tax withheld and $5,500 of Illinois state tax withheld from his salary. b. Nick received $8,000 in payments from his health insurance to cover medical expenses for himself. He had an additional $8,000 of unreimbursed medical expenses. c. During the year, they contributed $3,000 to their church, $3,000 qualified non-profit charitable organizations, and gave $1,000 to various political campaigns. d. Nick and Nancy’s total mortgage interest expense on their principal residence was $10,000. They also paid $800 in interest from a car loan, and $600 in interest on credit cards. Their real estate taxes were $5,000 and personal property taxes (car) were $250. They also paid $2,000 in state sales tax. Nick paid $1,800 in interest expense on qualified student loans.

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