For Calendar Year 2017, Jon and Betty Hansen (Ages 59

question 130

Essay

For calendar year 2017, Jon and Betty Hansen (ages 59 and 60) file a joint return reflecting AGI of $280,000.They incur the following expenditures: $$\begin{array} { l r } \text { Medical expenses before 10\%-of-AGI floor } & \$ 30,000 \\\text { Casualty loss (not covered by insurance) before statutory floors } & 30,000 \\\text { Interest on home mortgage } & 10,000 \\\text { Interest on credit cards } & 800 \\\text { Property taxes on home } & 13,000 \\\text { Charitable contributions } & 17,000 \\\text { State income tax } & 15,000 \\\text { Tax return preparation fees } & 1,200\end{array}$$ What is the amount of itemized deductions the Hansens may claim?

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Definitions:

Observations

Data collected through watching, measuring, and recording phenomena as part of a scientific study or research.

Mean Square Error

A metric that measures the average of the squares of the errors—that is, the average squared difference between the estimated values and the actual value.

Total Sum

The aggregate value obtained by adding all the numbers in a set of values.

Observations

Data points or individual pieces of information collected during a study or experiment.