Jolanta earned $80,000 and had the following income or expenses: Qualified dividend income $8,000 Credit card interest $ 250 Qualified mortgage interest $5600 Un-reimbursed employee medical expenses $12,000 Assuming she had no other income or expenses, what will be the amount of itemized deductions allowed on her federal tax return for 2018

Jolanta

The amount of itemized deductions allowed on her federal tax return for 2018:

= $5,600

Explanation:

a) Data and Calculations:

Jolanta's earnings = $80,000

Other income or expenses:

Qualified dividend income $8,000

Credit card interest $ 250

Qualified mortgage interest $5600

Unreimbursed employee medical expenses $12,000

Itemized Deductions:

Qualified mortgage interest $5600

b) The Tax Cuts and Jobs Act eliminated the deduction for unreimbursed employee expenses for the tax year 2018 to 2025.  This means that Jolanta cannot include the unreimbursed employee medical expenses of $12,000 in her itemized deductions.  Credit card interest is not an allowed item under itemized deductions as the tax law classifies it as a personal interest.

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