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