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Maya, who had significant itemized deductions for 2021 and therefore was eligible to use Schedule A, purchased a new vehicle in 2021 for $50,000 with

Maya, who had significant itemized deductions for 2021 and therefore was eligible to use Schedule A, purchased a new vehicle in 2021 for $50,000 with a state sales tax of 10%. The allocated deduction amount for other purchases made by Maya throughout the year, using the IRS state and local sales tax tables, would be $750. She also paid state income taxes of $4,500 for 2021. Maya's best option to legally maximize her tax savings in 2021, assuming she was under the $10,000 limit for state and local taxes, would be to:

  • take the standard deduction.

  • take the deduction for the state income taxes paid on Schedule A.

  • deduct the amount of state sales tax for the vehicle purchase on Schedule A.

  • deduct her total amount of allowable state sales tax deduction on Schedule A.

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