Kurstie received a $800 state income tax refund this year. Kurstie deducted $3,000 of state income taxes

Question:

Kurstie received a $800 state income tax refund this year. Kurstie deducted $3,000 of state income taxes paid in the prior year as part of her itemized deductions. Which of the following statements regarding the taxability of Kurstie’s refund is true?
a. If Kurstie’s itemized deductions exceeded the standard deduction by $200, then die $800 refund is included in gross income.
b. If Kurstie’s itemized deductions exceeded the standard deduction by $200, then $200 of the refund is included in gross income.
c. If Kurstie claimed the standard deduction instead, then the $800 refund is taxable.
d. Kurstie must include $3,000 in gross income in die current year.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

South-Western Federal Taxation 2019 Comprehensive

ISBN: 9781337703017

42th Edition

Authors: David M. Maloney, William A. Raabe, William H. Hoffman, James C. Young

Question Posted: