college. he calculated his above - the - line deductions to be $5,500, his itemized deductions to be $7,000…

college. he calculated his above - the - line deductions to be $5,500, his itemized deductions to be $7,000, and the standard deduction is $12,950. what deductions is lamar allowed to take that will minimize his taxes owed? he can take all three for $25,450 in deductions he can take the $7,000 and the $12,950 for $19,950 in deductions he can take the $5,500 and the $12,950 for $18,450 in deductions he can take the $5,500 and the $7,000 for $12,500 in deductions

college. he calculated his above - the - line deductions to be $5,500, his itemized deductions to be $7,000, and the standard deduction is $12,950. what deductions is lamar allowed to take that will minimize his taxes owed? he can take all three for $25,450 in deductions he can take the $7,000 and the $12,950 for $19,950 in deductions he can take the $5,500 and the $12,950 for $18,450 in deductions he can take the $5,500 and the $7,000 for $12,500 in deductions

Answer

Explanation:

Step1: Understand deduction rules

Tax - payers can take either the standard deduction or the itemized deductions, not both. Above - the - line deductions can be taken in addition to either the standard or itemized deductions.

Step2: Compare deductions

The itemized deductions are $7,000 and the standard deduction is $12,950. Since $12,950>7,000, the standard deduction should be chosen. Above - the - line deductions of $5,500 can be added to the standard deduction.

Step3: Calculate total deductions

The total deductions are $5,500 + 12,950=18,450$.

Answer:

He can take the $5,500 and the $12,950 for $18,450 in deductions