When Harry itemizes his deductions, can he deduct $9,500 for state income taxes?

The ability to deduct state income taxes when itemizing deductions is subject to specific rules outlined by the IRS. Harry can deduct his state income taxes, and the answer indicates that this deduction is fully deductible.

Under the Tax Cuts and Jobs Act, state and local tax deductions, which include state income taxes, are subject to a cap of $10,000 for married taxpayers filing jointly or $5,000 for married individuals filing separately. Since $9,500 falls under the $10,000 limit, Harry is able to deduct this amount in full when he itemizes his deductions.

This highlights the importance of understanding the particular thresholds and limits set by tax regulations, which can influence the total deductions available to a taxpayer.