Wayne paid $5000 in state income taxes, $3500 in state sale taxes, 4000 in local

Question

Wayne paid $5000 in state income taxes, $3500 in state sale taxes, 4000 in local taxes and 7000 in property taxes. What is the maximum amount that Wayne can claim as an itemized deduction on his 2018 return?
A. $10,000 B. $14,500 C.$16,000 D.$19,500 Wayne paid $5000 in state income taxes, $3500 in state sale taxes, 4000 in local taxes and 7000 in property taxes. What is the maximum amount that Wayne can claim as an itemized deduction on his 2018 return?
A. $10,000 B. $14,500 C.$16,000 D.$19,500 Wayne paid $5000 in state income taxes, $3500 in state sale taxes, 4000 in local taxes and 7000 in property taxes. What is the maximum amount that Wayne can claim as an itemized deduction on his 2018 return?
A. $10,000 B. $14,500 C.$16,000 D.$19,500 A. $10,000 B. $14,500 C.$16,000 D.$19,500 A. $10,000 B. $14,500 C.$16,000 D.$19,500

Explanation / Answer

The maximum amount one can claim for all of your state and local taxes is restricted to $ 10000.

Actual state and local taxes = 5000 +4000 = 9000

Amount that can be claim for state and local taxes =lower of 9000 or 10000 = $ 9000

Maximum amount that can be claimed for itemized deduction = 9000+3500+7000= 19500

correct optiion is "D"

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