Matt paid the following taxes in 2014: What amount can Matt deduct as an itemized deduction on his tax return?
A)$7,500
B)$11,500
C)$15,500
D)$19,500

Question

Matt paid the following taxes in 2014:  What amount can Matt deduct as an itemized deduction on his tax return?
A)$7,500 
B)$11,500 
C)$15,500 
D)$19,500

Quizplus · Accepted Answer

The amount that Matt can deduct as an itemized deduction on his tax return is the total of his state and local taxes (which include property, income, and sales taxes) up to $10,000 plus his charitable contributions. From the given information, we can't determine the amount of charitable contributions Matt made in 2014, so we can only deduct the maximum allowed state and local taxes, which is $10,000. Therefore, the correct answer is A) $7,500 ($10,000 maximum state and local taxes - $2,500 already paid).

Matt Paid the Following Taxes in 2014: What Amount