Could someone please tell me if i am right or wrong?

Question

this is the question:
During 2006 couples, who are married and have two dependent children, have the following income and losses:
Total salaries$130,000
Bank account interest25,000
Short-term capital gain4,000
Short-term capital loss(1,500)

they also incurred the following expenses:
Qualified medical expenses$20,000
State income taxes paid12,000
Property taxes on home2,300
Qualified residence interest6,000
Investment interest expense7,500
Cash charitable contributions80,000
Tax return preparation fees3,600
Unreimbursed employee business expense20,000

compute taxable income for the year.

this is what i got:

total allowable deduction $135,038
taxable income $9,262

Answer 1

Check my math but I get $135,188. Add up all deductions and then subtract 7.5% of $157,500 agi for medical limit, 2% of agi for the misc. deduction limit and $1,250 for the charitable contribution limit.

Answer 2

Wrong. You are showing a charitable contribution deduction for $80,000, which is more than 50% of your adjusted gross income. You cannot take that much as a charitable contribution deduction.


There are other issues too, and some of them would require that questions be asked and answered, but on the face of the hypothetical you present, your calculation is wrong, for the reason of the charitable contribution, if no others.

Answer 3

Go to H and R Block. Why should we compute your taxes for you for free?

Answer 4

Well, what answer did you get? Hard to tell you whether you're right or wrong when you don't say what your answer is to your homework problem.

Answer 5

Right or wrong about what?

Answer 6

That is what H&R Block is for!!