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?

Question

Quizplus · Accepted Answer

The Tax Cuts and Jobs Act of 2017 limits the total amount of state and local taxes (SALT) that can be deducted on Schedule A to $10,000 per year ($5,000 for married taxpayers filing separately). Therefore, Norma can only deduct up to $10,000 of her combined real estate and state income taxes as an itemized deduction. She cannot deduct any of the taxes as a for AGI deduction because they are not considered business or investment expenses. If Norma has no other itemized deductions, she should take the standard deduction instead.

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