Abe paid the following taxes in 2017: a. State tax withheld from his pay $ 3,400

Question

Abe paid the following taxes in 2017:

a. State tax withheld from his pay         $ 3,400  

b. State Estimated taxes paid                $ 2,000  

c. Balance due on 2016 State tax return(paid 2017) $ 350

d. Balance due on 2017 State tax return. (paid in 2018) $ 500

e. Real estate taxes paid $ 11,000

f. Township water & sewer charges $ 800

g. Federal Income tax withheld form pay $ 18,000

h. FICA and Medicare taxes $5,750

Calculate Abe’s deduction for taxes paid. Is this a deduction for or from AGI?

Explanation / Answer

Abe's deduction for taxes paid = state tax withheld from pay+state estimated taxes paid+balance due on 2016 state tax return+real estate taxes paid

= 3400+2000+350+11000

= $16,750

The deduction is from AGI as it is a below the line deduction.

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