Leticia is a single person who makes $45,000 per year. This year she paid $2,000 in student loan interest, $1,500 in medical expenses, $7,200 in rent and $4,800 in car loan payments. She contributes $3,600 per year to her 401(k) plan at work

Give her some tax advice.
A) Single people should always take the standard deduction.
B) People who have medical expenses should always itemize their deductions.
C) Calculate your taxes using both methods to see which provides a greater deduction.
D) You should itemize if you pay interest, since interest of any kind is tax deductible.


Answer: C

Business

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