Doctor co-pays and deductibles $300 Long Term Care (LTC) insurance (Paula) $1,800 Reference: 4012 F-5 to F-6 Hint: The appropriate deduction amount for Marketplace (HealthCare.gov) policies can only be calculated after form 8962 has been completed – do NOT enter now – we will do this later. Federal Refund: 2,116 NJ Refund Amount: 594 Check: After this step, Itemized Deductions = 2,502 Q: If you were to look at Sch A now, you would see that Line 1 (Medical and dental expenses) is 6,255. Why is this amount less than the total of all the medical expenses you entered? Step 14b Notes – Deductions – Taxes You Paid Real estate tax (Principal residence) $7,135 Real estate tax (Condo in Las Vegas) $1,865 Reference: 4012 F-6 BP: You must click “Add Sales Tax Worksheet” and enter State, Zip, and Number of days (but not percents) even if you do not have any extra sales tax on cars, etc. BP: Do NOT enter any NJ Property Tax recoveries (Homestead Benefit / PTR) at this point. See the notes on Step 14f for more detail. NJ: Record appropriate Real estate tax on NJ Checklist (Property Tax) Federal Refund: 2,116 NJ Refund Amount: 594 Check: After this step, Itemized Deductions = 11,502 Step 14c Notes – Deductions – Mortgage Interest The Hales received a Form 1098 from Acme Mortgage related to the mortgage on their Principal residence. Interest $2,135 Points $565 PMI $300 The Hales received a second Form 1098 from Acme Mortgage related to their Home Equity Line of Credit on their Las Vegas condo. The principal amount was $11,000. Interest $777 Reference: 4012 F-7 Federal Refund: 2,146 NJ Refund Amount: 594 Check: After this step, Itemized Deductions = 15,279
Doctor co-pays and deductibles $300 Long Term Care (LTC) insurance (Paula) $1,800 Reference: 4012 F-5 to F-6 Hint: The appropriate deduction amount for Marketplace (HealthCare.gov) policies can only be calculated after form 8962 has been completed – do NOT enter now – we will do this later. Federal Refund: 2,116 NJ Refund Amount: 594 Check: After this step, Itemized Deductions = 2,502 Q: If you were to look at Sch A now, you would see that Line 1 (Medical and dental expenses) is 6,255. Why is this amount less than the total of all the medical expenses you entered? Step 14b Notes – Deductions – Taxes You Paid Real estate tax (Principal residence) $7,135 Real estate tax (Condo in Las Vegas) $1,865 Reference: 4012 F-6 BP: You must click “Add Sales Tax Worksheet” and enter State, Zip, and Number of days (but not percents) even if you do not have any extra sales tax on cars, etc. BP: Do NOT enter any NJ Property Tax recoveries (Homestead Benefit / PTR) at this point. See the notes on Step 14f for more detail. NJ: Record appropriate Real estate tax on NJ Checklist (Property Tax) Federal Refund: 2,116 NJ Refund Amount: 594 Check: After this step, Itemized Deductions = 11,502 Step 14c Notes – Deductions – Mortgage Interest The Hales received a Form 1098 from Acme Mortgage related to the mortgage on their Principal residence. Interest $2,135 Points $565 PMI $300 The Hales received a second Form 1098 from Acme Mortgage related to their Home Equity Line of Credit on their Las Vegas condo. The principal amount was $11,000. Interest $777 Reference: 4012 F-7 Federal Refund: 2,146 NJ Refund Amount: 594 Check: After this step, Itemized Deductions = 15,279
PRO-P2%20Hale%20Scenario%20TY2016%20v0.9g.docx