During the current year, George, a salaried taxpayer, paid the following taxes which were not incurred in connection with a trade or business: $$\begin{array} { l r }
\text { Federal income tax (withheld by employer) } & \$ 1,500 \
\text { State income tax (withheld by employer) } & \$ 1,100 \
\text { FICA tax (withheld by employer) } & \$ 700 \
\text { Real property taxes } & \$ 300 \
\text { Federal auto gasoline taxes } & \$ 200 \
\text { Federal excise tax on telephone bills } & \$ 50
\end{array}$$ What amount can George claim for the current year as an itemized deduction for the taxes paid, assuming he deducts state and local income taxes?

Question

During the current year, George, a salaried taxpayer, paid the following taxes which were not incurred in connection with a trade or business: $$\begin{array} { l r } 
\text { Federal income tax (withheld by employer) } & \$ 1,500 \
\text { State income tax (withheld by employer) } & \$ 1,100 \
\text { FICA tax (withheld by employer) } & \$ 700 \
\text { Real property taxes } & \$ 300 \
\text { Federal auto gasoline taxes } & \$ 200 \
\text { Federal excise tax on telephone bills } & \$ 50
\end{array}$$ What amount can George claim for the current year as an itemized deduction for the taxes paid, assuming he deducts state and local income taxes?

Quizplus · Accepted Answer

Only state and local income taxes are deductible, for which George paid $1100. The federal income tax withheld by his employer is not deductible, nor are the FICA tax or federal excise tax on telephone bills. Real property taxes and federal auto gasoline taxes are deductible, but since George is deducting state and local income taxes, he cannot also deduct real property taxes. The total deductible amount, therefore, is $1,100 (state and local income taxes) + $200 (federal auto gasoline taxes) = $1,300.

During the Current Year, George, a Salaried Taxpayer, Paid the Following