Question

Newt is a single taxpayer living in Hollywood, California, with adjusted gross income for the 2018 tax year of $43,050. Newt's employer withheld $3,700 in state income tax from his salary. In April of 2018, he paid $300 in additional state taxes for his prior year's return. The real estate taxes on his home are $1,800 for 2018 and his personal property tax based on the value of his automobile is $75. Also, he paid $210 for state gasoline taxes for the year. The IRS estimate of general sales tax for Newt is $1,200 for 2018.

How much should Newt deduct on Schedule A of Form 1040 of his 2018 tax return for taxes paid?

Answer 1

$510

Step-by-step explanation:

Adjusted gross income for 2018 = $43050

state income tax = $3,700

Real estate tax = $1800

personal property tax = $75

Total tax paid = 3700 + 1800 + 75 = $5575

Additional tax paid not part of the current year tax return = $300

The amount that Newt deduct on Schedule A of form 1040 of his 2018 return for taxes paid will be = state gasoline tax and tax for prior year

= $210 + $300 = $510 will be deducted from the schedule A of form 1040 of his 2018 tax return for taxes paid