B. J. and Carolyn Grace are full time employees. B. J. is an elementary school teacher, and Carolyn is a registered nurse at a hospital. During the year, they incur the following employment related expenses:
School supplies for use in the classroom |
$1,400 |
Emergency room uniforms |
800 |
Union dues (teachers association) |
200 |
Job hunting expenses (Carolyn obtained another |
|
nursing position but decided not to change jobs) |
1,300 |
Continuing education correspondence courses |
|
(required to maintain nursing license) |
380 |
Professional dues and subscriptions |
1,100 |
None of these expenses are reimbursed by the employers. For the year, the Graces file a joint return reflecting salary income of $90,000. They also have gambling income of $6,000 and gambling losses of $7,000 (fully substantiated). They pay $400 to have their tax return prepared. They have other itemized deductions (i.e., interest on home mortgage, property taxes on personal residence, state income taxes, and charitable contributions) of $14,500. Determine the total amount of itemized deductions allowed to the Graces.