- 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 Michael's calculated state sales tax deduc- tion) $300 Personal property taxes based on value of vehicle $400 Friend's 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 Michael's mortgage insurance premium of $230 can be claimed as an itemized deduction on his Schedule A. a. True b. False What amount of gambling losses is Michael eligible to claim as a deduction on his Schedule A? a. $0 b. $500 c. $1,000 d. $2,000