B. J. and Carolyn Grace are full-time employees. B. J. is an elementary school teacher, and Carolyn is a registered nurse at a hospital. During the year, they incur the following employment-related expenses:
School supplies for use in the classroom ......................... $1,400
Emergency room uniforms ............................................. 800
Union dues (teachers association) .................................... 200
Job hunting expenses (Carolyn obtained another nursing position but decided not to change jobs) ........................................................... 1,300
Continuing education correspondence courses
(required to maintain nursing license) .............................. 380
Professional dues and subscriptions .............................. 1,100
None of these expenses are reimbursed by the employers.
For the year, the Graces file a joint return reflecting salary income of $90,000. They also have gambling income of $6,000 and gambling losses of $7,000 (fully substantiated).
They pay $400 to have their tax return prepared. They have other itemized deductions (i.e., interest on home mortgage, property taxes on personal residence, state income taxes, and charitable contributions) of $14,500. Determine the total amount of itemized deductions allowed to the Graces?