Holly and Zachary Neal, from Dublin, Virginia, are preparing to tile their 2011 income taxes. Their children are grown: however, Holly's mother, =Pa. has moved in with them so Holly is no longer working. ZEna is dependent on their income for support except for her $536 monthly Social Security benefit.

Zachary works for a software company and earns enough to keep their heads above water: however. he had to discontinue participation in his retirement plan so they could pay the bills. Holly is taking this opportunity to work toward her master's degree. They know they will file jointly but need your help preparing their tax return. They have gathered all of the appropriate records, as follows:

1099-DIV, Capital Gains, short-term………………………………………………............……$900

Zachary's W-2, Wage and Tax Statement………………………………………........……$54,500

Gambling winnings…………………………………………………………………....................…$1,500

Inheritance……………………………………………………………………………......................$35.000

Holly and Zach's aggregate traditional IRA contribution……………………………..$5.000

Martha's unreimbursed medical expenses……………………………....………………..$5.100

The Neals' unreimbursed medical expenses……………………………………….......$1,700

Martha's total living expenses, excluding medical…………………………………...$13,000

State taxes withheld and owed………………………………………..............................$2,280

Mortgage interest expense………………………………………....................................$6,000

Holly's student loan interest payments………………………………………..................$590

Holly's education expense………………………………………....................................$5,450

How much of the total medical expenses will the Neals be able to deduct on their taxes?

Answer rating: 100% (QA)

Total or gross income of an individual is the sum of all taxable income from all availa... View the full answer