A provision of the Code allows a taxpayer a deduction for Federal income tax purposes for some state and local income taxes paid (with an overall limit of $10,000). Question Content Area a. Does this provision eliminate the effect of multiple taxation of the same income? This deduction provides relief. Question Content Area b. Assume that a taxpayer, an individual, has itemized deductions that are less than the standard deduction. Will the taxpayer benefit from the deduction for state and local taxes paid? , because the deduction or state and local taxes paid allowed in addition to the standard deduction. Question Content Area c. If the taxpayer itemizes deductions and is in the 10% tax bracket, each dollar of deduction for state or local taxes reduces his or her Federal income tax liability by . If the taxpayer is in the 32% tax bracket, the saving is .
