Answer:
$180 is the correct answer!!!
Explanation:
Final answer:
Frieda can deduct $180 for non-reimbursed work expenses, as this amount is what remains after subtracting 2% of her AGI ($1,520) from her total non-reimbursed work expenses of $1,700.
Explanation:
The student has asked how much Frieda can deduct for non-reimbursed work expenses on her federal income tax return, given that she had $1,700 in such expenses and an adjusted gross income (AGI) of $76,000. Non-reimbursed work expenses are deductible to the extent that they exceed 2% of the taxpayer's AGI.
First, we calculate 2% of Frieda's AGI:
0.02 × $76,000 = $1,520
Since only the amount that exceeds this threshold is deductible, we subtract $1,520 from Frieda's total non-reimbursed work expenses:
$1,700 - $1,520 = $180
Therefore, the amount Frieda can deduct is $180.
The correct answer is B. $180.