Question: Louis, a single individual, has $ 2 , 0 0 0 in state taxes withheld from his salary in 2 0 1 9 . His

Louis, a single individual, has $2,000 in state taxes withheld from his salary in 2019. His total itemized deductions are $15,500. He claims the $2,000 as an itemized deduction on his 2019 tax return. In 2020, she receives a state income tax refund of $400. Under the tax benefit rule, he has to report income in 2020 of:
a. $400.
b. $-0-
c. $200.
d. $2,000.
e. $-0-, but he must file an amended 2019 tax return and reduce her itemized deductions by $400.
 Louis, a single individual, has $2,000 in state taxes withheld from

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!