In August, me and my wife received $6920 in refunds of state income taxes that I paid last year and we had $24,000 in standard reductions.

A).How much of the refund do we have to include in our gross income if we claimed $32,800 in itemized deductions, which include state income taxes of $7,600?

B) How much of the refund do we have to include in our gross income if we claimed $28,550 in itemized deductions, which include state income taxes of $12,650, which were limited to $10,000 due to the cap on state and local tax deductions?

Answer rating: 100% (QA)

Answer A You would include 6920 7600 80 in your gross income ... View the full answer