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Janice, age 32, earns $50,000 working in 2020. She has no other income. Her medical...

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Janice, age 32, earns $50,000 working in 2020. She has no other income. Her medical expenses for the year total $4,000. During the year, she suffers a casualty loss of $7,500 when her apartment is damaged by flood waters (part of a Federally declared disaster area). Janice contributes $10,000 to her church. On the advice of her friend, Janice is trying to decide whether to contribute $1,000 to a traditional IRA. Complete the table to show the effect the IRA contribution would have on Janice's itemized deductions. with IRA Contribution Without IRA Contribution Gross income 50,000 50,000 Contribution to IRA (1,000) 0 AGI 49,000 50,000 Itemized deductions: Charitable contribution 10,000 10,000 Medical expenses 250 Casualty loss $ 2,500 $ 2,400 Total itemized deductions 12,650 The $1,000 IRA contribution would increase Janice's itemized deductions by $ As a result, the $1,000 IRA contribution reduces her taxable income by $

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