Question 5 • FL-2102373-Personal Finance and Money Management Honors
Mr. and Mrs. Nedage are filing a joint tax return. While listing their deductions, they find that they can deduct $2,150 from medical bills, $826 from state taxes, $3,133 from charitable donations, and $1,331 from interest on their mortgage. The standard deduction for married couples filing jointly is $8,350. How does the standard deduction compare to the Nedages’ deductions?
Answer
T
The Nedages’ deductions are $1,740 better than the standard deduction.
T
The Nedages’ deductions are $7,440 better than the standard deduction.
T
The standard deduction is $910 better than the Nedages’ deductions.
T
The standard deduction is $9,260 better than the Nedages’ deductions.
Explanation
Add the Nedages’ deductions: $2,150 + $826 + $3,133 + $1,331 = $7,440. Compare that total with the $8,350 standard deduction: $8,350 − $7,440 = $910. The standard deduction is $910 greater, so choice C is correct.
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