Assignment Task:
Selected Facts:
Dave and Patricia, ages 47 and 46, and both U.S citizens and residents, will file married filing joint in 2023
Their primary residence is a single family home in the suburbs; they commute to work in the city.
In 2023, Tricia was employed as a Senior Vice President of an AI concern, with a salary of $350,000 annually.
Tricia participates in a 401(K) plan at work and contributed the maximum amount to that plan.
Assume that Dave and Tricia will be claiming itemized deductions in 2023.
They have substantial investment income.
Despite their busy schedules, the Matthews believe that volunteering is very important, accordingly, they make it a priority. The entire family volunteers weekly at a local community home for orphans (which is qualified as a 501 (c ) (3) organization). Dave provides financial advice to the young people of the community while Tricia tutors the middle school children. They also organize activities at the center, cook meals, and clean. They estimate the value of their time spent this year as approximately $5,000. They want to know if this amount is deductible as a charitable contribution.