For Calendar Year 2012, Jon and Betty Hansen File a Joint

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The Answer is For the medical expenses, the taxpayers are allowed $2,000 [$23,000 - (7.5% ´ $280,000 AGI)]. The casualty loss must first be reduced by $100 and then by $28,000 (10% ´ $280,000 AGI). Thus, only $1,900 [$30,000 - $28,100 ($100 + $28,000)] can be deducted. Also, note that the tax return preparation fees are miscellaneous itemized deductions subject to the 2% floor. The floor of $5,600 (2% ´ $280,000 AGI) reduces the $1,200 to $0.
The itemized deductions total $58,900 ($10,000 mortgage interest + $13,000 property tax + $17,000 contributions + $15,000 state income tax + $2,000 medical + $1,900 casualty).

For Calendar Year 2012, Jon and Betty Hansen File a Joint

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