Question

How much can Jeff claim as an itemized deduction for taxes paid if he paid the following in 2019: (state income tax withheld of $5000; real estate taxes of $3500; personal property taxes based on value of his car of $1000, state income tax owned for 2016 of $450; and gas tax of $675)

Choose one answer.
a. None of these
b. $10,625
c. $10,000
d. $9,625
e. $9,950

Answer 1

Answer: $10,000

Step-by-step explanation:

First and foremost, we need to calculate the total amount of itemized deductions which will be:

= $5,000 + $3,500 + $1,000 + $450 + $675

= $10625

We should note that taxpayers can deduct taxes for up to $10,000. Therefore, in this scenario, the amount that Jeff can claim as an itemized deduction for taxes paid will be $10000