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Changes in Tax Law Assignment

Author:
February 18th, 2020

Your client, Sadie Merriweather, is struggling to understand the changes in the tax law. She would like you to explain the changes to itemized deductions and personal exemptions, her personal information is as follows:

Charitable Contributions $1,000 Mortgage Interest $7,300 Property Taxes $3,500 State Income Tax Paid in 2018 $15,000 Safety Deposit Rental Fee $500 Tax Preparation Fees $750 Medical Expenses $3,000 Sadie has two children ages 10 & 14 and files as Head of Household. Her only source of income is W-2 wages of $100,000. She has itemized on her prior tax filings and she would like to understand whether she will itemize this year or take the standard deduction. Also, she would like to understand what tax benefits are available by claiming her children as dependents. .

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