Melanie, a homeowner, has mortgage interest of $3,000, real estate taxes of $1,500, and charitable contributions of $500. According to her filing status, a standard deduction of $6,300 is allowed
How much should Melanie deduct on her tax return?
A) $5,000
B) $6,300
C) $6,700
D) $7,700
Answer: B
Explanation: B) Itemized deductions = $3,000 + $1,500 + $500 = $5,000 which is less than the standard deduction of $5,950, so she should deduct $5,950.
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