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

Itemized Deductions

Summary and Exercises

Question 3 of 4

Mr. and Mrs. Hernando live in Puerto Rico, use the Married Filing Jointly filing status, and itemize their deductions. During this tax year, Mr. Hernando earned $42,389 working for the federal government and Mrs. Hernando earned $14,250 working part time in a local beauty salon.

Their expenses were:

Expense Amount

Medical and dental expenses (doctor's fees)

$2,950

Home mortgage interest expenses

$11,159

Real estate taxes

$1,020

Charitable contributions (cash)

$1,700

Remember, the formula for calculating the allowable portion of a deduction is:

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

Based on this information, what are their total itemized deductions from line 17 of their Schedule A?

$11,159
$10,386
$8,351
$0