A staff tax accountant has come to you for advice. She has
begun a tax return and does not know...

Question

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 obtainthe mostrecently revised Form 1040 (Schedule A), follow these instructions:
Go to http://www.irs.gov/app/picklist/list/formsInstructions.htmlIn the Find box, type 1040 (in product number) and click "Find"Scroll down to Form 1040 (Schedule A&B), titled Itemized Deductions and Interest & Ordinary DividendsComplete Schedule A only. You do not have to complete Schedule B.

David · Accepted Answer

Schedule A – Treatment of expenses under itemized Deductions 
Allowable expenses 
State income taxes withheld  – 1675 
Real Estate Taxes  - 850  
Personal Property Taxes - 500 
Home Mortgage Interest - 3850 
Services to Qualified NP  - 1000
Disallowable Expenses 
All medical expenses such as Contact Lenses, Prescriptions and unreimbursed medical 
expenses are not allowable as the client has got reimbursed medical insurance and it is 
assumed that such expenditure is covered by such insurance. Charitable Contributions only 
cash is below the limit of $250 hence it is not allowed as charitable contributions.

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...

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