Question
Determine the total amount that will qualify for itemized deduction by the taxpayer. Rachel paid these taxes in 2021: $5,867 real estate taxes on her
Determine the total amount that will qualify for itemized deduction by the taxpayer.
Rachel paid these taxes in 2021: $5,867 real estate taxes on her summer-use cottage next to a lake in Maine, set liquor taxes of $740, social security taxes of $7,961 withheld from her pay checks, local (city) earned income tax of $799 and $8660 of real estate taxes on the house owned and occupied by her aged father who qualifies as Rachel's dependent for tax purposes. Rachel also had federal income taxes of $17, 654 withheld form her pay this year and had to pay $345 of federal income taxes for 2020 when her return was filed in April. Rachel lives in a very large apartment for which she pays monthly rental fees of $5,000, her landlord estimates that 30 percent of the rent is consumed by real estate taxes on the building.
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