Schedule A

After establishing the AGI, we itemize Anthonys deductions on Schedule A$.$ This includes state and local sales taxes paid $(3,600),$ and a substantial amount of charitable contributions $(50,000$ donation to the Stork School of Engineering. These itemized deductions, combined, exceed the standard deduction and will reduce his taxable income. Any qualified dividends and capital gains will be taxed at preferential rates, so well also complete the Qualified Dividends and Capital Gain Tax Worksheet. Finally, by subtracting these deductions from the AGI, we determine Anthonys taxable income, which well use to calculate the final tax due or refund on Form $1040.$