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Danika, a single, cash-method taxpayer, paid the following taxes in the current year: Danika's employer withheld $5,700 for federal income taxes, $1,600 for state income
Danika, a single, cash-method taxpayer, paid the following taxes in the current year: Danika's employer withheld $5,700 for federal income taxes, $1,600 for state income taxes, and $3,600 for FICA from her paychecks. Danika purchased a new car and paid $630 in sales tax and $80 for the license. The car's FMV was $21,000 and it weighed 3,000 pounds. The county also assessed a property tax on the car. The tax was 1% of the car's value and $20 per hundredweight. Danika uses the car 100% of the time for personal purposes. Danika sold her house on May 10 of the current year. The county's property tax on the home for the year is $2,150, payable on February 1 of the current year. The county's real property tax year is the calendar year. Danika's AGI for the year is $56,000 and her other itemized deductions exclusive of taxes are $7,600 (disregard any leap year). Read the requirements. Requirement a. What is Danika's deduction for taxes in the current year? (Assume that the purchaser owns the house on the date of the sale. Round your answers to the nearest dollar. If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Tax type Amount State income taxes 1600 210 Property tax on the car Property tax on the home Total deduction for taxes
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