Harvey itemized deductions on his 2017 income tax return. Harvey plans to itemize deductions again in 2018 and the following information is available regarding state and local income taxes: Taxes withheld in 2018$12,500 Refund received in 2018 for 2015 tax$500 Assessment paid in 2018 for 2016 tax$300 Assuming he deducts state and local income taxes, the above information should be reported by Harvey in his 2018 tax return as: a.Itemized deduction for state and local income taxes of $10,000 and income from state and local tax refund of $500 b.Itemized deduction for state and local income taxes of $12,300 c.Itemized deduction for state and local income taxes of $12,800 d.Itemized deduction for state and local income taxes of $12,500, and income from state and local tax refund of $200 e.None of these choices are correct.

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dItemized deduction for state and local income taxes of 12500 and inco... View the full answer