This year Norma, a single taxpayer, paid $11,200 of real estate taxes on her personal residence and $9,500 of state income taxes.Which of the following is true?
A)Norma can deduct $11,200 of real estate taxes as an itemized deduction.
B)Norma can deduct $9,500 of state income taxes as a for AGI deduction.
C)Norma can deduct $10,000 of taxes as an itemized deduction.
D)Even if Norma has no other itemized deductions, she should claim the standard deduction.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

The Tax Cuts and Jobs Act (TCJA) of 2017 limited the amount of state and local taxes (SALT) that taxpayers can deduct as an itemized deduction to $10,000. Therefore, Norma can only deduct up to $10,000 of her combined real estate and state income taxes.

This Year Norma, a Single Taxpayer, Paid $11,200 of Real