Question 1

During the current year,George,a salaried taxpayer,paid the following taxes which were not incurred in connection with a trade or business: 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?

Accepted Answer

From the provided information, the following taxes were paid:
- $500 in state income taxes
- $400 in property taxes
- $500 in local income taxes (assumed to be separate from state income taxes)

Assuming George deducts state and local income taxes as an itemized deduction, he can claim the sum of the state income tax and local income tax paid, which is $500 + $500 = $1,000.

In addition, he can also claim the amount of property tax paid, which is $400.

Therefore, the total amount George can claim as an itemized deduction for the taxes paid is $1,000 + $400 = $1,400, which is option C.

Question 2

During the current year,Mr.and Mrs.West paid the following taxes: What amount can the Wests deduct as property taxes in calculating itemized deductions for the current year?

Accepted Answer

The answer of During the current year,Mr.and Mrs.West paid the...

Question 3

The amount of a special assessment charged to residents for the installation of sidewalks on their street is not deductible on Schedule A as property taxes.

Accepted Answer

Special assessments for improvements such as installing sidewalks are not considered property taxes and therefore are not deductible on Schedule A.

Question 4

The cost of a fishing license is considered a personal property tax and is deductible as an itemized deduction.

Accepted Answer

The cost of a fishing license is not considered a personal property tax and is not deductible as an itemized deduction.

Question 5

Which of the following taxes is not deductible as an itemized deduction?

Accepted Answer

Federal income tax is not deductible as an itemized deduction, while property tax on a second residence, sales tax in a state with no income tax, and state income tax are all deductible as itemized deductions.

Question 6

Which one of the following is not tax deductible?

Accepted Answer

All of the options mentioned are tax deductible expenses. However, it is important to note that there are certain limitations and restrictions on the amount of deductions that can be claimed for state and local taxes. Additionally, taxpayers who claim the standard deduction instead of itemizing their deductions will not be able to deduct these expenses.

Question 7

Which of the following is not deductible as an itemized deduction?

Accepted Answer

The answer of Which of the following is not deductible...

Question 8

Meade paid $5,000 of state income taxes in 2017.The total actual sales taxes paid during 2017 was $4,500,which did not include $3,000 for the sales taxes paid in 2017 on Meade's new boat.How should Meade treat the taxes paid in his 2017 tax return?

Accepted Answer

The answer of Meade paid $5,000 of state income taxes...

Question 9

During the current year,Seth,a self-employed individual,paid the following taxes: What amount can Seth claim as an itemized deduction for taxes paid during the current year?

Accepted Answer

The answer of During the current year,Seth,a self-employed individual,paid the...

Question 10

In 2017,state income taxes or state and local sales taxes,whichever is larger,may be deducted as an itemized deduction on Schedule A.

Accepted Answer

This is true according to the current tax laws as of 2017. Taxpayers can either deduct state income taxes or state and local sales taxes on Schedule A, whichever amount is larger.

Question 11

Newt is a single taxpayer living in Hollywood,California,with adjusted gross income for the 2017 tax year of $43,050.Newt's employer withheld $3,700 in state income tax from his salary.In April of 2017,he paid $300 in additional state taxes for his prior year's return.The real estate taxes on his home are $1,800 for 2017 and his personal property tax based on the value of his automobile is $75.Also,he paid $210 for state gasoline taxes for the year.The IRS estimate of general sales tax for Newt is $1,200 for 2017.
​
How much should Newt deduct on Schedule A of Form 1040 of his 2017 tax return for taxes paid?

Accepted Answer

The answer of Newt is a single taxpayer living in...

Question 12

Harvey itemized deductions on his 2016 income tax return.Harvey plans to itemize deductions again in 2017 and the following information is available regarding state and local income taxes: Assuming he deducts state and local income taxes,the above information should be reported by Harvey in his 2017 tax return as:

Accepted Answer

The answer of Harvey itemized deductions on his 2016 income...

Question 13

​Stan,a single taxpayer,has $1,700 of state income taxes withheld from his wages in the current year.In the current year,he also received a $320 refund on his prior year state income tax.Stan did not itemize last year but he intends to do so this year.Stan used the sales tax estimate tables and determined his sales tax deduction amount is $1,600.What amount should Stan deduct for state taxes?

Accepted Answer

Stan should deduct the $1,700 of state income taxes withheld from his wages in the current year. He cannot deduct the $320 refund he received on his prior year state income tax. Additionally, since his sales tax deduction is lower than his state income tax deduction, he should use the state income tax deduction instead. Therefore, he should deduct $1,700 for state taxes.

Question 14

To calculate the amount of state and local income taxes which may be deducted as an itemized deduction,state income taxes paid during the year must be reduced by state income tax refunds received during the year.

Accepted Answer

The answer of To calculate the amount of state and...

Question 15

Margo has $2,200 withheld from her wages for state income taxes during 2017.In March of 2017,she paid $400 in additional taxes for her 2016 state tax return.Her state income tax liability for 2017 is $2,700 and she pays the additional $500 when she files her 2017 state tax return in April of 2018.What amount should Margo deduct as an itemized deduction for state income taxes on her 2017 federal income tax return,assuming she deducts state and local income taxes?

Accepted Answer

Margo can deduct the $2,200 withheld in 2017 and the $500 paid in 2018 for her 2017 state tax liability, totaling $2,700. The $400 paid in 2017 for her 2016 tax return is not deductible for 2017.

Question 16

Daniel lives in a state that charges a vehicle registration fee of $50 plus $20 for every $1,000 of value.During the current year,Daniel paid $170 for registration of his automobile.
a.​
How much of the vehicle registration fee is deductible as a personal property tax on Schedule A of Daniel's Form 1040?
b.Explain your answer.

Accepted Answer

The answer of Daniel lives in a state that charges...

Question 17

Taxpayers are permitted an itemized deduction for the lesser of state income taxes paid or state sales taxes paid.

Accepted Answer

Taxpayers have the option to deduct either state income taxes paid or state sales taxes paid, but not both. They can choose the one that provides the larger deduction.

Question 18

Frank is a resident of a state that imposes a tax on income.The following information pertaining to Frank's state income taxes is available: What amount should Frank use as state and local income taxes in calculating itemized deductions for his 2017 Federal tax return,assuming he deducts state and local income taxes?

Accepted Answer

The answer of Frank is a resident of a state...

Question 19

Sherry had $5,600 withheld from her wages for state income taxes during 2017.In May of 2017,she received a $450 refund for her prior year state tax return.The amount of Sherry's tax on her 2017 tax return is $6,100 and she pays the additional tax of $500 ($6,100 - $5,600)when she files her state income tax return in April of 2018.
a.​
Assuming she deducts state income tax,how much state income taxes should Sherry deduct on Schedule A of Form 1040 of her 2017 federal income tax return?
b.How should Sherry report the $450 refund?
​

Accepted Answer

The answer of Sherry had $5,600 withheld from her wages...

Question 20

Weber resides in a state that imposes a tax on income.The following information relating to Weber's state income taxes is available: What amount should Weber use as state and local income taxes in calculating itemized deductions for his 2017 Federal income tax return?

Accepted Answer

The answer of Weber resides in a state that imposes...

Quiz 5: Itemized Deductions and Other Incentives