2
QuizMultiple Choice

Tax Credits and Deductions — Quiz

Question 2 • Financial Math

Hanley paid $⁢3,000 in state income taxes and $⁢2,000 in property taxes. Which tax deduction might Hanley be eligible for?

Answer
A
charitable contributions deduction
B
mortgage interest deduction
C
state and local taxes (SALT) deduction
D
medical expenses deduction

Explanation

State income taxes and property taxes are both state and local taxes. Hanley may be eligible to deduct these taxes under the state and local taxes (SALT) deduction, subject to applicable limits and tax rules. Medical expenses, mortgage interest, and charitable contributions are different types of deductions.

AI-written and checked against the verified answer.

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