Question

Interview Notes • Archie Hamilton is 45 years old and single. • Archie had wage income of $55,000. He also had gambling winnings of $1,000. • He is not sure if he should itemize or take the standard deduction. Archie paid the following: • $5,200 qualifying home mortgage interest. • $9,507 for real estate taxes. • $5,040 for state income taxes withheld in 2019. • Unreimbursed doctor and dentist bills in the amount of $7,000. • Unreimbursed prescription drugs for $14. • Vitamins for $120. • A statement received from his church showing donations made throughout the year totaling $1,200. • Receipts for donations of furniture and clothing in good, used condition to Goodwill. The total estimated fair market value is $100. • Tax preparation fee of $315 for his 2018 tax return. • $50 paid in 2019 on his 2018 balance due state income tax return. • $45 investment expense • $250 in gambling losses 11. What is the total amount of state income and real estate taxes deductible on Archie's Form 1040, Schedule A? A. $14,597 B. $14,547 C. $10,000 OD. $9,507

Answer 1

Question No. (11) - Answer -

Step - (1) - Relevant Information Given -

Archie Hamilton is 45 years old and single.

He paid the following -

• $9507 for real estates taxes.
• $5040 for state income taxes withheld in 2019.

.

Step - (2) - Analysis and Conclusion -

As per U.S. Internal Revenue Service, Deduction is allowed up to $10000, for a combination of State income taxes and Real estate taxes.

In the given case, Total amount of State income and Real estate taxes deductible on Archie's Form 1040, Schedule A = $10000 for the year.

Therefore, Option - (C) $10000 is Correct.