Scenario 8: Archie Hamilton • Archie Hamilton is 45 years old and single. • Archie had wage income of $55,000. He also had gambling winnings of $1,000. • He is not sure if he should itemize or take the standard deduction. • Archie paid the following: o $5,200 qualifying home mortgage interest o $9,507 in real estate (property) taxes o $5,040 for state income taxes withheld in 2021 o Unreimbursed doctor and dentist bills in the amount of $7,000 o Unreimbursed prescription drugs for $14 o Vitamins for $120 o A statement received from his church showing donations made throughout the year totaling $1,200 o Receipts for donations of furniture and clothing in good, used condition to Goodwill. The total estimated fair market value is $100. o Tax preparation fee of $315 for his 2019 tax return. o $50 paid in 2020 on his 2019 balance due on his state income tax return o $45 investment expense o $250 in gambling losses
What is the total amount of state income and real estate taxes deductible on Archie’s Form 1040, Schedule A? a. $14,597 b. $14,547 c. $10,000 d. $9,507