Question
Given the following information, would it be better for Illinois resident Salem Marcos to itemize her sales tax or her state income tax on her
Given the following information, would it be better for Illinois resident Salem Marcos to itemize her sales tax or her state income tax on her federal tax return?
Federal taxable income | $46 comma 700.0046,700.00 | ||
Federal marginal income tax rate | 2525% | ||
State taxable income | $42 comma 970.0042,970.00 | ||
State income tax rate | 33% | ||
Total sales tax paid | $1 comma 412.801,412.80 |
Assume that Salem has sufficient itemized deductions to choose itemization method over the standard deduction.
It would be better for Illinois resident Salem Marcos to:(Select best answer below.)
A.
Itemize state income tax.Itemize state income tax.
B.
No difference between the two.No difference between the two.
C.
Itemize sales tax.
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