Fred and Wilma are married and each aged 67 years, with no dependents. Their income and expenses are listed below.
Salaries $150,000
Interest Income – State Bank 1,500
Interest Income – private activity bonds (issued 2013) 20,000
Gambling income 3,000
Dividend income (not qualified dividends) 2,000
Medical expenses (before AGI floor) 13,000
Gambling losses 6.000
State income taxes 3,500
Mortgage interest on home 4,600
Investment interest expense 2,100
Real estate taxes 3,200
Compute their tentative minimum tax for 2016.
Is State Income Tax included in itemized deduction?