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can someone please answer this. how much will i add on the state income tax. Maria, age 32, earns $60,000 working in 2021. She has
can someone please answer this. how much will i add on the state income tax.
Maria, age 32, earns $60,000 working in 2021. She has no other income. Her medical expenses for the year total $6,000. During the year, she suffers a casualty loss of $9,500 when her apartment is damaged by flood waters (part of a Federally declared disaster area). Maria contributes $6,000 to her church and pays $4,000 of state income taxes. On the advice of her friend, Maria is trying to decide whether to contribute $5,000 to a traditional IRA. Complete the table to show the effect the IRA contribution would have on Maria's itemized deductions. Gross income Contribution to IRA AGI Itemized deductions: Charitable contribution State income taxes Medical expenses Casualty loss Total itemized deductions With IRA Contribution (5,000) Without IRA Contribution As a result, the $5,000 IRA contribution reduces her taxable income by
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