Eileen Is a Single Individual with No Dependents

question 49

Essay

Eileen is a single individual with no dependents. Her adjusted gross income for 2018 is $60,000. She has the following items that qualify as itemized deductions. What is the amount of Eileen's AMT adjustment for itemized deductions for 2018?
$$\begin{array} { l r } \text { Medical expenses (before limitations) } & \$ 12,000 \\\text { Mortgage interest on a qualified residence } & 8,000 \\\text { Charitable contribution of a Rockwell portrait } & \\\text { (\$12,000 FMV; } \$ 10,000 \text { basis) } & 12,000 \\\text { State income taxes paid and withheld } & 3,200 \\\text { Real estate taxes paid } & 2,500\end{array}$$

Understand the definition and implications of tax incidence.

Recognize the principles of taxation and their application in policy justification.

Identify concepts of horizontal and vertical equity in taxation.

Describe the characteristics and effects of progressive, proportional, and lump-sum tax systems.

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