Interview Notes   Robert is 41 years old and files as Head of Household

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Interview Notes

 

• Robert is 41 years old and files as Head of Household. He is not blind. 
• His 2020 adjusted gross income (AGI) is $48,624, which includes gambling winnings of $200.
• Robert would like to itemize his deductions this year.
• Robert brings documentation for the following expenses: 
• $7,257 Hospital and doctor bills
• $600 Contributions to Health Savings Account (HSA)
• $2,325 Long Term Care Insurance premiums before age limitation applied
• $2,970 State withholding (higher than Robert's calculated state sales tax deduction) 
• $273 Personal property taxes based on value of vehicle
• $700 Friend's personal GoFundMe campaign to help with COVID-19
• $250 Cash contributions to the Red Cross
• $100 FMV of clothing in good condition donated to the Salvation Army (Robert purchased clothing for $800)
• $7,025 Mortgage interest
• $797 Real estate tax
• $260 Mortgage Insurance Premiums (PMI)
• $120 Homeowners association fees
• $3,500 Gambling losses

1. If Robert chooses to itemize, which of the following is he eligible to claim as a deduction on Schedule A?

A. $700 GoFundMe donation

B. $3,500 Gambling losses

C. $120 Homeowner's Association fees

D. $260 Mortgage Insurance Premiums (PMI)

2.If Robert chooses not to itemize, what is the amount that he can deduct as an above-the-line charitable contribution adjustment in 2020?

A. $250

B. $300

C. $350

D. $1,050