Question: (Click the icon to view the standard deduction schedule.) During 2020, Alyssa sustains serious injuries from a snow-skiing accident. She incurs the following expenses: B





(Click the icon to view the standard deduction schedule.) During 2020, Alyssa sustains serious injuries from a snow-skiing accident. She incurs the following expenses: B Click the icon to view expenses incurred.) (Click the icon to view more information.) Requirement What is her 2020 taxable income? Item Amount $ 11,400 Doctor bills Hospital bills 9,400 Legal fees in suit against ski resort 2,600 Alyssa is single and has no dependents. For the year, her salary is $80,000. She pays $1,300 in medical and dental insurance premiums, which is withheld from her paycheck on an after-tax basis, $6,780 in mortgage interest on her home, and $1,150 in interest on her car loan. Her health insurance provider reimburses her for $8,500 of the medical expenses. STANDARD DEDUCTION Filing Status $ 24,800 $ 18,650 $ 12,400 $ 12,400 Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100. * These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind. $1,300* $1,650* Begin by determining the excess medical expenses and the total itemized deductions. (If an input Doctor bills Hospital bills Medical expenses Less Deductible medical expenses Total itemized deductions Now calculate her 2020 taxable income. Minus: Deductions from AGI: Taxable income
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