Reference no: EM133158381

Question 1 - During 2021, George, a salaried taxpayer, paid the following taxes which were not incurred in connection with a trade or business:

Federal income tax (withheld by employer) $2,500

State income tax (withheld by employer) 1,000

FICA tax (withheld by employer) 700

Real property taxes on his home 1,200

Federal auto gasoline taxes 200

Federal excise tax on telephone bills 50

What amount can George claim for 2021 as an itemized deduction for the taxes paid, assuming he does not elect to deduct sales taxes?

Question 2 - During 2021, Janice paid the following expenses:

Prescription drugs $470

Aspirin and over-the-counter cold capsules 120

Hospitals and doctors 800

Health insurance premiums 1,600

What is the total amount of medical expenses (before considering the limitation based on adjusted gross income) that would enter into the calculation of itemized deductions on her 2021 tax return?

Question 3 - For 2021, Eugene and Linda had adjusted gross income of $50,000. Additional information for the year is as follows:

Cash contribution to church $1,200

Tuition paid to a parochial school for their child 2,800

Contribution of used clothing to Goodwill (fair market value) 120

Cash contribution to a needy family 100

What is the amount that they can use as a deduction for charitable contributions for the year?

Question 4 - Frank is a resident of a state that imposes a tax on income. The following information pertaining to Frank's state income taxes is available:

State income taxes withheld in 2021 $3,500

Refund of 2020 tax received in 2021 400

Deficiency assessed and paid in 2021 for 2019 taxes 600

What amount should Frank use as state and local income taxes in calculating itemized deductions for his 2021 federal tax return?

Question 5 - Jill had adjusted gross income in 2021 of $130,000. During the year her personal summer home was almost completely destroyed by a tornado which was declared a national disaster. Pertinent data with respect to the home is as follows:

Cost basis $145,000

Fair market value before casualty 160,000

Fair market value after casualty 20,000

Jill was partially insured and received $112,000 for the damage. What is her allowable casualty loss deduction for the year?