Question

As a result of the Tax Cuts and Jobs Act, under Federal tax law the tax preparation fees deduction are suspended in tax year 2019. Therefore, under California tax law, a California taxpayer who itemizes his or her deductions and has an adjusted gross income (AGI) of $35,000, and no miscellaneous expenses other than tax preparation fees of $1,000, would be able to take a deduction of what amount on his or her California income tax return for tax year 2019

Answer 1

$300

Step-by-step explanation:

California tax law continue to allow miscellaneous itemized deductions subject to 2% of Federal AGI

Tax preparation fees $1,000

Less: AGI limit of 2% $700 (35,000*2%)

Deduction on his/her California $300

income tax return