How much can Paul deduct as an adjustment to income given his alimony and medical expenses?

Prepare for the Intuit Academy Tax Level 1 Exam. Study with flashcards and multiple choice questions, each question includes hints and explanations. Ace your exam and advance your tax knowledge!

To determine how much Paul can deduct as an adjustment to income for alimony and medical expenses, it's essential to understand the tax treatment of these items.

Alimony payments are generally deductible from the payer's taxable income, provided they meet certain criteria, such as being part of a divorce or separation agreement executed before 2019. If Paul has made alimony payments, he can deduct the total amount paid.

Medical expenses, on the other hand, can be deducted only to the extent that they exceed a certain percentage of Paul's adjusted gross income (AGI). For tax purposes, only the portion of medical expenses that surpasses this threshold can be itemized on Schedule A and not directly deducted as an adjustment to income. Medical expenses are not an adjustment to income but rather fall under itemized deductions.

If we analyze Paul's financial scenario and it is indicated that alimony payments total $23,000, this amount would qualify as a deduction from his income directly, making it the adjustment he can claim. Therefore, the total deductibility Paul has from alimony reflects in the answer provided, which is $23,000. This value aligns with the treatment of alimony as an adjustment to income, distinguishing it from other deductions like medical expenses that do not have

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