A single taxpayer has a state AGI of $765,000 and federal AGI of $785,000. Itemized deductions total $55,000 under both federal and state law (no adjustments). The total amount of medical expense deduction included in that figure is $17,500. What is the amount of itemized deductions that can be claimed on the state return?
The state AGI is $765,000 and the itemized deductions total $55,000. Since the medical expense deduction is $17,500, the remaining itemized deductions are $55,000 - $17,500 = $37,500.
Therefore, the amount of itemized deductions that can be claimed on the state return is $37,500.