Cindy, Who Is Single and Age 66, Has No DependentsWhat Is the Amount of Cindy's AMT Adjustment for Itemized

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The Answer is Cindy's adjustments for itemized deductions are as follows:

\begin{array}{lr} ext { Medical expenses (Note 1) } & \$ 1,250 \ ext { State income taxes } & 2,500 \ ext { Real estate taxes } & 4,000\ ext { Unreimbursed employee expenses (Note 2) } & 1,600 \ ext { Mortgage interest (Note 3) } &-0-\ ext { Total } & \$ 9,350\ ext { Notes }\end{array}

1() Medical expenses:
For income tax [$10,000 - (7.5% × $50,000 AGI)] $6,250
For AMT [$10,000 - (10% × $50,000 AGI)] (5,000)
Positive adjustment $1,250
2() Unreimbursed employee expenses: $2,600 - (2% ×
$50,000 AGI) _$1,600
3() The mortgage interest of $5,500 is the same (i.e., qualified housing and residence interest) in this case for AMT purposes and regular income tax purposes.

Cindy, Who Is Single and Age 66, Has No Dependents

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Cindy, Who Is Single and Age 66, Has No Dependents

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