Question

Thelma (39) is single. Her federal adjusted gross income is $75,300. Her itemized deduction expenses are as follows:
• Church contributions (with receipts): $7,500.
• Unreimbursed employee business expenses: $3,045.
• Tax preparation fees: $200.
• Fees paid for investment advice: $800.
• Legal expense (necessary to collect taxable income): $320.
• Safe deposit box (used to keep taxable investment-related documents): $100.
What is Thelma's total California itemized deductions?
$0
$7,500
$10,459
$11,965

Answer 1

Total = $10,459.

Workup:
- Charitable contributions: $7,500 (fully deductible)
- Miscellaneous itemized expenses (subject to 2% of AGI): 3,045 + 200 + 800 + 320 + 100 = $4,465
- 2% of AGI = 0.02 × $75,300 = $1,506
- Deductible miscellaneous = 4,465 − 1,506 = $2,959

7,500 + 2,959 = $10,459.