Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Itemized Deductions

Determining the Allowable Portion

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Elizabeth and Matthew Leon are Puerto Rican residents in their 40s who use the filing status Married Filing Jointly. During this tax year, Elizabeth earned $32,981 as an employee of the U.S. Department of Agriculture and Matthew earned $18,354 as the manager of a local restaurant. Elizabeth is not sure which expenses are deductible. She gives you this list of expenses:

Expense Amount

Real estate taxes


Driver's license renewal


Medical insurance premium


Out of pocket doctor's fees


Out of pocket dental expenses


Veterinarian expenses


Home mortgage interest


The formula for calculating the allowable portion of a deduction is:

(Gross taxable income subject to U.S. tax / Gross income from all sources) x
Deduction = Allowable portion of deduction

Based on the facts given, compute the allowable portion of each itemized deduction and enter it on their Schedule A.

Click here to open Schedule A and complete lines 1, 3, 4, 6, 9, 10, 15, 16, 19, and 29.

Elizabeth and Matthew Leon.