Question

Naomi (47) is single. Her adjusted gross income is $75,300. Her itemized deduction expenses are as follows:

Church contributions (with receipts): $7,500.
Unreimbursed employee business expenses: $3,845.
Tax preparation fees: $520.
Safe deposit box: $100.

Based on the information listed above, what is the California itemized deduction amount for Naomi?

a. $0
b. $7,500
c. $10,459
d. $11,965

Answer 1

Naomi's California itemized deductions include only her church contributions of $7,500; unreimbursed employee business expenses and tax preparation fees are not deductible.

Step-by-step explanation:

To determine Naomi's California itemized deduction amount, we must examine the eligible deductions based on federal and state tax laws. As per the tax laws, unreimbursed employee business expenses and tax preparation fees are not deductible. Thus, we can only consider her church contributions with receipts for itemized deductions.

Therefore, Naomi's California itemized deduction amount would be:

• Church contributions: $7,500

Her other expenses, such as unreimbursed employee business expenses ($3,845), tax preparation fees ($520), and safe deposit box ($100) are not deductible. Thus, the correct answer is (b) $7,500.

Answer 2

Naomi's California itemized deduction amount is $11,965, which only includes her church contributions of $7,500, as her other listed expenses are not deductible for California state tax purposes.

Step-by-step explanation:

California itemized deduction:

The correct answer to the calculation of Naomi's California itemized deduction amount is $11,965 Church contributions are a qualified deduction, so we count the full $7,500. The unreimbursed employee business expenses and tax preparation fees would be deductible for federal purposes but are not deductible on California state returns as of the tax laws in place prior to the knowledge cutoff in 2023.

The safe deposit box fee is not a deductible expense for either federal or California state tax purposes. Therefore, the only deductible amount for Naomi's California state taxes is her church contributions, which totals $7,500. However, under California tax law, she might also be allowed a state-specific standard deduction. In conclusion, the itemized deduction on Naomi's California tax return would be her church contributions of $7,500 since other expenses listed are not deductible in California.