Question

During the current year, Robbie and Anne pay the following taxes:

State income tax (balance due for last year)
$1,000

Estimated state income tax
2,400

Estimated federal income tax
3,250

Sales tax (Federal Sales Tax table)
600

Excise Taxes
700

Property tax on personal residence
2,450

Real estate tax on condominium in Breckinridge, CO.
1,100
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What amount can Robbie and Anne claim as an itemized deduction for taxes on their federal income tax return for the year?

Answer 1

Robbie and Anne can claim a total of $6,950 as their itemized deduction for taxes on their federal income tax return, which includes state income, property, and real estate taxes.

Step-by-step explanation:

The amount Robbie and Anne can claim as an itemized deduction for taxes on their federal income tax return for the year includes several tax payments. They can deduct state income tax (both the balance due for last year and the estimated tax for the current year), property tax on their personal residence, and real estate tax on their condominium. The sales tax and excise taxes typically are not deductible for federal income tax purposes. Therefore, the deductible amount would be the sum of the state income tax ($1,000 + $2,400), property tax ($2,450), and real estate tax ($1,100), totalling $6,950.