Theon is a single taxpayer. For 2019 and 2020, he expects to report AGI of $80,000. He provides the following information about itemized deductions.

He plans to contribute a total of $16,000 in cash to a qualified charitable organization and $9,000 each year to the University of Florida’s Football Boosters to guarantee him the right to secure season tickets to Gator games. It does not matter to Theon whether he donates the $16,000 in 2019 or 2020.

He estimates he will incur $1,500 to $2,000 each year in out-of-pocket medical expenses that his insurance company will not reimburse.

He also expects to pay $2,800 in state income taxes. Theon does not own a home so he does not pay state property taxes.

Required: For all problems, assume the standard deduction is the same in 2019 and 2020. There is a template on Campus if you want to use it to organize your computations. If Theon contributes $8,000 to the qualified charitable organization in each year, what are his total below-the-line deductions each year? If Theon contributes $8,000 to the qualified charitable organization in each year, what is his taxable income in total across both years? If Theon contributes the entire $16,000 in 2019, what are his total below-the-line deductions each year? If Theon contributes the entire $16,000 in 2019, what is his taxable income in total across both years? Assume Theon expects to buy a house in 2019. The property taxes will be $2,000 and the interest on his mortgage will be $10,000. In this scenario, how much does his total taxable income across both years change depending on when he makes the contribution to the qualified charitable organization?

Answer rating: 100% (QA)

Required If The on contributes 8 000 to the qualified charitable organization in each year what are his total below the line deductions each year ANS WER The on s total below the line deductions for 2... View the full answer