Alex and Myra Burg, married and filing joint income tax returns, derived their entire income from the operation of their retail candy shop. Their 2015 adjusted gross income was $54,142. The Burgs itemized their deductions on Schedule A for 2015. The following unreimbursed cash expenditures were among those made by the Burg during 2015:
- State income tax: $1,200
- Self-employment tax: $7,650
What amount should the Burgs deduct for taxes in their itemized deductions on Schedule A for 2015?
a. $1,200
b. $3,825
c. $5,025
d. $7,650
Answer: A