Frank Is a Resident of a State That Imposes a Tax

question 45

Multiple Choice

Frank is a resident of a state that imposes a tax on income. The following information pertaining to Frank's state income taxes is available: What amount should Frank use as state and local income taxes in calculating itemized deductions for his 2014 Federal tax return, assuming he elects to deduct state and local income taxes?

• A)$3,500
• B)$3,700
• C)$4,100
• D)$4,200
• E)None of the above

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Definitions:

Minimum Standard

A predefined level of quality, performance, or capability that products, services, or processes must meet or exceed, often set by regulatory bodies.

Marginal Tax Rate

The marginal tax rate is the percentage of tax applied to your income for each tax bracket in which you qualify, essentially the tax rate on your last dollar of income.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, often aimed at ensuring tax equity.

Sales Taxes

Taxes imposed by governments on the sale of goods and services, collected by sellers at the point of sale.