Question - Ben and Rebecca, both age 62, are a married couple who file a joint income tax return for the 2016 tax year. They anticipate an AGI of $100,000 for 2016. Their anticipated itemized deductions are as follows:
|
Home mortgage interest
|
$3,900
|
|
State income taxes
|
$2,200
|
|
Property taxes
|
$3,000
|
|
Charitable contributions
|
$3,400
|
|
Tier II miscellaneous deductions
|
$1,950
|
|
Medical expenses
|
$ 9,800
|
Calculate Ben and Rebecca's taxable income.
If Ben and Rebecca's income and itemized deductions remain fairly consistent over the next several years, is there a planning strategy that you would recommend to help reduce their tax liability?