Exercise $5-27($Algorithmic$)($L$\mathrm{.}0\mathrm{.}3)$

Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in $2024.$

If an amount is zero, enter $"0".$

a$.$ Myrna and Geoffrey filed a joint tax return in $2023.$ Their AGI was $$86,825,$ and itemized deductions were $$29,200,$ which included $$7,300$ in state income tax and no other state or local taxes. In $2024,$ they received a $$5,840$ refund of the state income taxes that they paid in $2023.$ The standard deduction for married filing jointly in $2023$ was $$27,700.$

$3$

b$.$ Veronica filed as a single taxpayer in $2023.$ Her AGI was $$231,500,$ and itemized deductions were $$47,100.$ Her local property taxes were $$14,500$ and her state income taxes were $$18,400.$ In $2024,$ Veronica received a $$4,200$ refund of the state income taxes she paid in $2023.$ The standard deduction for single filers in $2023$ was $$13,850.$

$$ x

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Generally, if a taxpayer obtains a deduction for an item in one year and in a later year recovers all or a portion of the prior deduction, the recove is included in gross incorne in the year received.