Question
Teresa, who uses the cash method of accounting, lives in a state that imposes an income tax. During 2020, her withholdings for state income tax
Teresa, who uses the cash method of accounting, lives in a state that imposes an income tax. During 2020, her withholdings for state income tax purposes amount to $6,500. On April 2, 2020, she files her state return for 2019 and includes a payment of $300 with the return. On April 14, 2021, she files her state return for 2020 and includes a payment of $600 with the return. During 2020, Teresa also paid a total of $4,000 in state sales taxes. If she itemizes deductions, how much may Teresa claim as a deduction for taxes on her Federal income tax return for calendar year 2020?
Group of answer choices
$11,400
$10,000
$6,800
$4,150
$7,400
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