Paula lives in Arkansas, a state, which imposes a state income tax. During 2021, she pays the

Question:

Paula lives in Arkansas, a state, which imposes a state income tax. During 2021, she pays the following taxes:

a. If Paula’s adjusted gross income is $35,000 what is her allowable deduction for taxes?

b. Assume the same facts as in part a, except that Paula pays $1,600 in sales tax on a motor vehicle she purchased during the year. What is Paula’s allowable deduction for taxes?

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Concepts In Federal Taxation 2022

ISBN: 9780357515785

29th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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Question Posted: Sep 06, 2023 08:34 AM

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Paula lives in Arkansas, a state, which imposes a state income tax. During 2021, she pays the

Question:

Federal tax withheld State income tax withheld State sales tax- actual receipts Real estate tax Property tax on car (ad valorem) Social Security tax Gasoline taxes Excise taxes 5,125 1,900 370 1,740 215 4,324 124 112

Step by Step Answer:

a Paula is allowed an itemized deduction for the real estate tax and the property taxes she paid on ...View the full answer

Concepts In Federal Taxation 2022

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