Paula is single and lives in South Carolina, which imposes a state income tax. During 2010, she
Question:
Paula is single and lives in South Carolina, which imposes a state income tax. During 2010, she pays the following taxes:
Federal tax withheld .... $5,125
State income tax withheld ... 1,900
State sales tax—actual receipts . 370
Real estate tax ....... 1,740
Property tax on car (ad valorem) . 215
Social Security tax ...... 4,324
Gasoline taxes ........ 124
Excise taxes ......... 112
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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a Paula is allowed an itemized deduction for the real estate tax and the property taxes she paid on ...View the full answer
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Related Book For 
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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