Guillermo and Esmeralda live in Puerto Rico, use the Married Filing Jointly filing status, and itemize their deductions. During this tax year, Guillermo worked for the U.S. government and earned $49,965. Esmeralda did not work but received $2,452 interest from her savings account at Banco of Puerto Rico.
Their expenses were:
| Expense |
Amount |
Out-of-pocket dental expenses |
$750 |
Real estate taxes |
$875 |
Interest on home mortgage |
$9,200 |
Charitable contributions (cash) |
$1,821 |
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?
