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Paula is single and lives in South Carolina, which imposes a state income tax. During 2009, she pays the following taxes:

Federal tax withheld

$5,125

State income tax withheld

1,900

State sales tax-actual receipts

370

Real estate tax

1,740

Property tax on car (ad valorem)

215

Social Security tax

4,324

Gasoline taxes

124

Excise taxes

112

1. If Paula's adjusted gross income is $35,000, what is her allowable deduction for taxes?

2. Assume the same facts as in part a, except that Paula pays $1,600 in sales tax on a motor vehicle she purchased during the year. What is Paula's allowable deduction for taxes?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M91700714

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