Frank and Liz are married. During 2020, Frank has $2,800 in state income taxes withheld from his

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Frank and Liz are married. During 2020, Frank has $2,800 in state income taxes withheld from his paycheck, and Liz makes estimated tax payments totaling $2,200. In May 2021, they receive a state tax refund of $465. What is the proper tax treatment of the refund in 2021 if

a. They use the standard deduction?

b. They have itemized deductions other than state income taxes of $21,000?

c. They have itemized deductions other than state income taxes of $20,000?

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Concepts In Federal Taxation 2021

ISBN: 9780357141212

28th Edition

Authors: Kevin E. Murphy, Mark Higgins, Randy Skalberg

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