Spencer paid the following taxes this year. Compute Spencer's itemized deduction for taxes.

Question

Spencer paid the following taxes this year.  Compute Spencer's itemized deduction for taxes.

Quizplus · Accepted Answer

To calculate itemized deduction for taxes, you add up all state, local, and/or foreign real estate taxes, personal property taxes, state and local income taxes, and general sales taxes paid during the year. 
We only have information about $4,000 of state and local income taxes paid by Spencer. So the total itemized deduction for taxes would be: 
$4,000 (state and local income tax) + $5,025 (property tax) = $9,025. 
Therefore, the correct answer is C.

Spencer Paid the Following Taxes This Year