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?