Question

Melinda is itemizing deductions on her federal income tax return. Her AGI was $295,420 last year, and she contributed $148,160 to charity. If charitable contributions are deductible up to 50% of a taxpayer's AGI, how much can Melinda deduct for charitable contributions?

Answer 1

Answer: $147,710

Explanation:

Given: Last year Melinda's AGI = $295,420

The amount she contributed to charity = $148,160

If charitable contributions are deductible up to 50% of a taxpayer's AGI, then the amount she could deduct for charitable contributions is given by :-

`50\%\ of\ AGI\\\\=0.5*$\295,420\\\\=\$147,710`

Hence, the amount she could deduct for charitable contributions = $147,710

Answer 2

Melinda can deduct a total of $147,710 for charitable contributions in this tax year. This answer is simply a function of her total AGI, 295,420, multiplied by the allowable amount, 50%.