Question: Interview Notes Michael is 49 years old and files as single. His 2021 adjusted gross income (AGI) is $49,500, which includes gambling winnings of $1,000.

Interview Notes
  • Michael is 49 years old and files as single.
  • His 2021 adjusted gross income (AGI) is $49,500, which includes gambling winnings of $1,000.
  • Michael would like to itemize his deductions this year.
  • Michael brings documentation for the following expenses:
    • $8,200 Hospital and doctor bills
    • $700 Contributions to Health Savings Account (HSA)
    • $2,500 Long Term Care Insurance premiums before age limitation applied
    • $3,400 State withholding (higher than Michaels calculated state sales tax deduction)
    • $300 Personal property taxes based on value of vehicle
    • $400 Friends personal GoFundMe campaign
    • $275 Cash contributions to the Red Cross
    • $100 Fair market value of clothing in good condition donated to the Salvation Army (Michael purchased clothing for $800)
    • $7,500 Mortgage interest
    • $820 Real estate tax
    • $230 Mortgage Insurance Premiums (PMI) on a home he purchased in 2017.
    • $150 Homeowners association fees
    • $2,000 Gambling losses
12. What amount of gambling losses is Michael eligible to claim as a deduction on his Schedule A?

A. $0

B. $500

C. $1000

D. $2000

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