Volunteer Income Tax Assistance (VITA) Certification Practice Test

What is the total of Evan's itemized deductions on Schedule A, line 29?

1. $10,692

2. $12,406

3. $12,646

4. $13,346

The correct answer is: $12,646

To determine the total of Evan's itemized deductions on Schedule A, line 29, it is essential to understand how itemized deductions are calculated and what factors contribute to this total. The correct answer indicates that Evan's itemized deductions amount to $12,646. In the context of the question, the amount on line 29 of Schedule A represents the sum of various allowable deductions, which may include medical expenses, state and local taxes, mortgage interest, charitable contributions, and other miscellaneous deductions. Each of these components is subject to specific limits and thresholds outlined by the IRS. For Evan, if his calculated itemized deductions amount to $12,646, this suggests that he has properly accounted for all eligible expenses and has met any criteria necessary, such as adjusting for any phase-out thresholds that apply to high-income taxpayers. Understanding the correct total is crucial as it directly influences Evan's taxable income and, subsequently, his tax liability. If Evan itemizes rather than takes the standard deduction, ensuring accurate reporting of this total is vital to compliance with tax regulations and optimal tax outcomes. The other options represent different totals, which might arise from different calculations or assumptions about eligible deductions, but they do not reflect the accurate total of itemized deductions as provided