Louis files as a single taxpayer. In April of this year he received a $900 refund of
Question:
Louis files as a single taxpayer. In April of this year he received a $900 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the standard deduction last year was $6,350.
a. Last year Louis claimed itemized deductions of $6,600. Louis’s itemized deductions included state income taxes paid of $1,750.
b. Last year Louis had itemized deductions of $4,800 and he chose to claim the standard deduction. Louis’s itemized deductions included state income taxes paid of $1,750.
c. Last year Louis claimed itemized deductions of $7,790. Louis’s itemized deductions included state income taxes paid of $2,750.
Step by Step Answer:
Essentials Of Federal Taxation 2019
ISBN: 9781260190045
10th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver