Elizabeth is 54 years old and files as single.
• Her 2024 adjusted gross income (AGI) is $52,000, which includes gambling winnings of $2,000.
• Elizabeth would like to itemize her deductions on Form 1040 Schedule A this year.
• Elizabeth brings documents for the following items:
o $9,500 hospital and doctor bills
o $600 contributions to Health Savings Account (HSA)
o $3,600 state withholding (higher than Elizabeth's calculated state sales tax deduction)
o $300 personal property taxes based on the value of the vehicle
o $600 friend’s personal GoFundMe campaign
o $350 cash contributions to the Red Cross
o $200 fair market value of clothing (in good used condition) donated to the Salvation Army (Elizabeth
purchased the clothing for $900)
o $7,300 mortgage interest
o $2,300 real estate tax
o $1,500 homeowners association fees
o $4,000 gambling losses
Advanced Scenario 5: Test Questions
11. Elizabeth can claim the $1,500 homeowners association fees as a deduction on her Form 1040,
Schedule A.
a. True
b. False
12. What amount of gambling losses is Elizabeth eligible to claim as a deduction on her Form 1040,
Schedule A?
a. $0
b. $1,000
c. $2,000
d. $4,000