Given the following information, would it be better for Illinois resident Salem

Question

Given the following information, would it be better for Illinois resident Salem Marcos to itemize her sales tax or her state income tax on her federal tax return?

Federal taxable income                             $52,100.00
Federal marginal income tax rate                         25%
State taxable income                                 $42,810.00
State income tax rate                                              3%
Total sales tax paid                                      $1,375.80

Assume that Salem has sufficient itemized deductions to choose itemization method over the standard deduction.

Q1- It would be better for Illinois resident Salem Marcos to:(Select best answer below.)

A.Itemize state income tax.

B.No difference between the two.

C.Itemize sales tax.

Explanation / Answer

State Income tax would be amount of Rs.=

42810*3/100= 1284.30

and sale tax would be 1375.80

hence would be better to itemize state income tax

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