Question: Tim is a single, cash-method taxpayer with one personal exemption and an AGI of $50,000. In April of this year Tim paid $1,020 with his

Tim is a single, cash-method taxpayer with one personal exemption and an AGI of $50,000. In April of this year Tim paid $1,020 with his state income tax return for the previous year. During the year, Tim had $5,400 of state income tax and $18,250 of federal income tax withheld from his salary. In addition, Tim made estimated payments of $1,360 and $1,900 of state and federal income taxes, respectively. Finally, Tim expects to receive a refund of $500 for state income taxes when he files his state tax return for this year in April next year. What is the amount of taxes that Tim can deduct as an itemized deduction?

Step by Step Solution

★★★★★

3.40 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Tim can deduct the state taxes paid with last years ret... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1169-L-B-L-I-T-E(1830).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

During 2015, James, a single, cash method taxpayer incurred the following expenditures: Qualified medical expenses .$ 8,000 Investment interest expense .16,000 Other investment activity expenses...

During 2016, James, a single, cash method taxpayer incurred the following expenditures: Qualified medical expenses..................................$ 8,000 Investment interest...

During 2014, James, a single, cash method taxpayer incurred the following expenditures: Qualified medical expenses ............................ $8,000 Investment interest expense...

Tim is a single, cash-method taxpayer with one personal exemption and an AGI of $50,000. In April of this year, Tim paid $1,000 with his state income tax return for the previous year. During the...

Tim is a single, cash-method taxpayer with one personal exemption and an AGI of $50,000. In April of this year, Tim paid $1,180 with his state income tax return for the previous year. During the...

Tim is a single, cash-method taxpayer with one personal exemption and an AGI of $50,000. In April of this year, Tim paid $700 with his state income tax return for the previous year. During the year,...

Tim is a single, cash-method taxpayer with one personal exemption and an AGI of $50,000. In April of this year, Tim paid $1,020 with his state income tax return for the previous year. During the...

Dawn, a single, cash-method taxpayer, paid the following taxes in 2013: Dawn's employer withheld $5,400 for federal income taxes, $2,000 for state income taxes, and $3,800 for FICA from her 2013...

Dawn, a single, cash-method taxpayer, paid the following taxes in 2015: Dawns employer withheld $5,400 for federal income taxes, $2,000 for state income taxes, and $3,800 for FICA from her 2015...

QUESTION 2 Belly operates a bemuty salon sa wole proprietorship Bollywooww and runs an apartment building. This year Betty had the following income and expenses. Determina Bally's AGI. You may sure...

The Double Dip Co. is expecting its ice cream sales to decline due to the increased interest in healthy eating. Thus, the company has announced that it will be reducing its annual dividend by 5% a...

State when standard additions and internal standards, instead of a calibration curve, are desirable, and why.

What distinguishes a perpetuity from other types of annuities? Payments decrease over time. Payments are made irregularly. Payments are made at the beginning of each period. Payments start after a...

Investigate some of the economic, lega l-political, social, cultural, and technological barrie rs to inte rnational business.

Explain why taxpayers are allowed to exclude gifts and inheritances from gross income even though these payments are realized and clearly provide taxpayers with the wherewithal to pay.

Describe the kinds of insurance premiums an employer can pay on behalf of an employee without triggering includible compensation to the employee.

Jim was injured in an accident and his surgeon botched the medical procedure. Jim recovered $5,000 from the doctors for pain and suffering and $2,000 for emotional distress. Determine the taxability...

Imagine you purchased 1 0 0 shares of Company ABC s stock at the price of $ 7 5 / share . You are concerned about a potential decline in ABC stock price, but you do not want to abandon your position...

Below are the earnings per share and the dividends per share of three companies. Gamma Co. Omega Co. Delta Co. EPS DPS EPS DPS EPS DPS $ 2.00 $ 1.00 $ 2.00 $ 1.00 $ 2.00 $ 1.00 2.10 1.05 2.10 1.00...

A stock has an expected return of 1 2 7 percent, its beta is 1 . 8 0 , and the risk - free rate is 3 . 2 percent. What must the expected return on the market be ? ( Do not round intermediate...