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How to find the AGI and total of itemized deductions in this situation.?
single tax payer is employed as a nurse at a local hospital. Their records reflect the following items of revenue and expense for 2008.
Gross wages $20,000
Expenses:
Travel expenses not reimbursed, 1,100
Cost of commuting to and from work, reimbursed, and included in gross wages: 550
Charitable contributions: 700
Interest and taxes on personal residence: 3,900
Nurse’s uniform, reimbursed and included in gross wages: 250
A) what is the adjusted gross income?
B) What is the total of itemized deductions?
Okay, so are her uniforms deductible even though they were reimbursed…because they were part of her income?
20,000 + 550 + 250 = 20,800 AGI
As mentioned commuting is not deductible.
Itemized deductions (business expenses are less 2% of AGI)
1100 + 250 – 416 + 700 + 3900 = 5534
(slightly more than $5450 std deduction, assuming the travel expenses are actually deductible without knowing details)
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