Assignment Type:Individual Project Deliverable
Length:2 pages + 1 completed Schedule A
Points
Possible:125 Due Date:6/2/2013 11:59:59 PM CT

APA formatted ReferencesDue: May 12th 4:00 a.m.
A staff tax
accountant has come to you for advice. She has begun a tax return and does not
know what to do with the expenses that the client has submitted as itemized
deductions. She is unsure which expenses are allowable and should be included on
her Schedule A. Review the expenses submitted by the client below. (Note: The
client’s AGI is $45,000.)

Client submitted expenses:

Personal property taxes	$ 500
Reimbursed health insurance premiums	$ 1,500
Charitable contributions (cash only)	$ 200
Prescriptions	$ 150
Mortgage interest	$ 3,850
Contact lenses	$ 200
State income taxes withheld	$ 1,675
Unreimbursed medical expenses	$ 875
Services provided to a qualified nonprofit	$ 1,000
Real estate taxes	$ 850

Using the client submitted expenses above, complete the following:

• List the allowable expenses.
• Assist your staff with the completion of the Schedule A tax
  form for the most recent tax year.
• For each expense not allowed, please explain why it is disallowed.

To obtain the most recently revised Form 1040 (Schedule A), follow these
instructions:

1. Go to http://www.irs.gov/app/picklist/list/formsInstructions.html
2. In the Find box, type 1040 (in product
   number) and click “Find”
3. Scroll down to Form 1040 (Schedule A&B), titled Itemized Deductions
   and Interest & Ordinary Dividends
4. Complete Schedule A only. You do not have to complete Schedule B.