Tobias overpays his 2018 state tax by $500 and gets a refund of $510 ($510 plus $10
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Question:
Tobias overpays his 2018 state tax by $500 and gets a refund of $510 ($510 plus $10 in interest) in 2019. How is this refund treated for income tax purposes?
a. $500 will be taxed at the state and federal levels
b. Only the $10 will be taxed at the state level, but $510 will be taxed at the federal level
c. $510 will be taxed at the state and federal levels.
d. $10 will be taxed at the state and federal levels, but only using the blind widower filing status rates
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ISBN: 9781483333540
7th Edition
Authors: Chava Frankfort Nachmias, Anna Leon Guerrero
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