Marsha is filing her federal income tax return with the Single filing status. She had an adjusted gross income of $56,800 last year and is trying to decide whether to take the standard deduction of $5700 or to itemize deductions. Last year she had $4900 in medical expenses, $3100 in state and local income taxes paid, $1940 in mortgage interest paid, $530 in charitable contributions, and $1200 in non-reimbursed work expenses. Part 1: if medical expenses are deductible to the extent that they exceed 7.5% of a taxpayers AGI how much will Marsha be able to deduct for medical expenses if she itemizes deductions?
Part 2: If Marsha itemizes deductions, how much will she be able to deduct for state and local income taxes paid? How about for mortgage interest paid?
Part 3: If charitable contributions are deductible up to 50% of a taxpayers AGI how much will Marsha be able to deduct for charitable contributions if she itemizes deductions?
Part 4: If non-reimbursed work expenses are deductible to the extent that they exceed 2% of a taxpayer's AGI, how much will Marsha be able to deduct for non-reimbursed work expenses if she itemizes deductions?
Part 5: What is the sum of Marsha's itemized deductions? Should Marsh itemize deductions or use the standard deduction?
