Myrna and Geoffrey filed a joint tax return in 2014. Their AGI was $85,000, and itemized deductions

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Myrna and Geoffrey filed a joint tax return in 2014. Their AGI was $85,000, and itemized deductions were $13,700, which included $4,000 in state income tax. In 2015, they received a $1,800 refund of the state income taxes they paid in 2014. The standard deduction for married filing jointly in 2014 was $12,400.
Under the tax benefit rule, what amount of the state income tax refund is included in gross income in 2015?
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South Western Federal Taxation 2016 Comprehensive

ISBN: 9781305395114

39th Edition

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

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