Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions