Mara, age 32, earns $60,000 working in 2021. She has no other income. Her medical expenses...

 

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María, age 32, earns $60,000 working in 2021. She has no other income. Her medical expenses for the year total $6,000. During the year, she suffers a casualty loss of $9,500 when her apartment is damaged by flood waters (part of a Federally declared disaster area). María contributes $6,000 to her church and pays $4,000 of state income taxes. On the advice of her friend, María is trying to decide whether to contribute $5,000 to a traditional IRA. Complete the table to show the effect the IRA contribution would have on María's itemized deductions. With IRA Contribution Without IRA Contribution Gross income $4 $ Contribution to IRA (5,000) AGI $ Itemized deductions: Charitable contribution $4 $4 State income taxes %$4 Medical expenses $4 Casualty loss $4 %$4 Total itemized deductions %$4 The $5,000 IRA contribution would María's itemized deductions by $ . As a result, the $5,000 IRA contribution reduces her taxable income by $ María, age 32, earns $60,000 working in 2021. She has no other income. Her medical expenses for the year total $6,000. During the year, she suffers a casualty loss of $9,500 when her apartment is damaged by flood waters (part of a Federally declared disaster area). María contributes $6,000 to her church and pays $4,000 of state income taxes. On the advice of her friend, María is trying to decide whether to contribute $5,000 to a traditional IRA. Complete the table to show the effect the IRA contribution would have on María's itemized deductions. With IRA Contribution Without IRA Contribution Gross income $4 $ Contribution to IRA (5,000) AGI $ Itemized deductions: Charitable contribution $4 $4 State income taxes %$4 Medical expenses $4 Casualty loss $4 %$4 Total itemized deductions %$4 The $5,000 IRA contribution would María's itemized deductions by $ . As a result, the $5,000 IRA contribution reduces her taxable income by $

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