Mr. and Mrs. Hernando live in Puerto Rico, use the Married Filing Jointly filing status, and itemize their deductions. During this tax year, Mr. Hernando earned $42,389 working for the federal government and Mrs. Hernando earned $14,250 working part time in a local beauty salon.
Their expenses were:
Expense |
Amount |
Medical and dental expenses (doctor's fees) |
$2,950 |
Home mortgage interest expenses |
$11,159 |
Real estate taxes |
$1,020 |
Charitable contributions (cash) |
$1,700 |
Remember, the formula for calculating the allowable portion of a deduction is:
(Gross income subject to U.S. tax/Gross income from all sources) x Deduction = Allowable portion of deduction
Based on this information, what are their total itemized deductions from line 17 of their Schedule A?
|
$11,159 |
|
$10,386 |
|
$8,351 |
|
$0 |