QUESTION IMAGE
Question
question 2 of 10
jill had an agi of $25,000. she had $2800 in medical expenses, paid $6000 in rent, and had to buy a new uniform for work, which was not reimbursed by her employer. which expense(s) can she itemize on her tax return?
a. medical expenses and nonreimbursed work expenses.
b. nonreimbursed work expenses, mortgage interest, and medical expenses
c. mortgage interest and medical expenses
d. mortgage interest only
Brief Explanations
- First, analyze medical expenses: Medical expenses can be itemized if they exceed a certain percentage of AGI (Adjusted Gross Income). Jill's AGI is $25,000, and her medical expenses are $2800. We need to check the threshold (usually 7.5% or 10% of AGI for different years, but here we focus on the concept). Even if we assume a threshold, the question is about which expenses are eligible in general for itemization. Medical expenses are a common itemized deduction.
- Non - reimbursed work expenses: Expenses like a work uniform not reimbursed by the employer can be itemized as an employee business expense (subject to limitations, but in the context of this question, it is an eligible type of expense for itemization).
- Rent payment: The question says she paid rent, not mortgage. So mortgage interest (mentioned in options B and C) is not applicable here because she is a renter, not a homeowner with a mortgage. So options B, C, and D are incorrect as they include mortgage interest (which is not relevant here) or exclude the correct expenses. Only option A includes the two eligible expenses (medical and non - reimbursed work expenses) based on the given situation.
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A. Medical expenses and nonreimbursed work expenses.