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Standard deduction or itemize deductions

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In your reading, you discovered that everyone has the option to take the standard deduction or itemize their deductions. Assume someone (age 35) is married. Combined, they make $100,000, and own a house on which they owe $200,000. They give 10% of their income to charity, pay 6% interest on their mortgage (they have an interest-only loan and have made no principal reductions), $3,000 in real estate taxes, and had $6,000 in medical expenses. Would they be better off to use the standard deduction or itemize? Read the information in your notes and look at the information at https://blog.taxact.com/standard-vs-itemized-deductions/ to decide. Please compare the actual standard deduction from 2018 that they can deduct versus the itemizations that they can deduct from the given information. (You should show the details with amounts on what you are itemizing versus what the standard decution would be.) Whichever amount is higher is the one that you would want to use, as that will lower the tax amount.

Reference no: EM132392690

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