Apply the tax benefit rule to determine the amount of the state income tax refund included...
Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in 2020.
If an amount is zero, enter "0".
a. Myrna and Geoffrey filed a joint
tax return in 2019. Their AGI was $85,000, and itemized deductions
were $25,100, which included $7,000 in state income tax and no
other state or local taxes. In 2020, they received a $1,800 refund
of the state income taxes that they paid in 2019. The standard
deduction for married filing jointly in 2019 was $24,400.
$
b. Veronica filed as a single
taxpayer in 2019. Her AGI was $230,000, and itemized deductions
were $42,000. Her local property taxes were $13,000 and her state
income taxes were $17,000. In 2020, Veronica received a $2,100
refund of the state income taxes she paid in 2019. The standard
deduction for single filers in 2019 was $12,200.
$
Homework Answers
Ans:
A).Itemized deductions =25,100
Standard deductions = 24,400
State income tax that need to be included in 2020 will be the difference between Itemized deductions and standard deductions
=> $25,100-24,400
=> $700
And as per tax benefit rule this $700 amount computed above will be included in gross income of 2020
B)
Answer - $0
Here in this case answer is zero
As state income taxes in 2019 is higher than the standard deduction
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Apply the tax benefit rule to determine the amount of the state
income tax refund included...
Apply the tax benefit rule to determine the amount of the state income tax refund included...
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withheld. On April 13, 2019, Jan paid $250 with her 2018 state
tax return. During 2019 she had $2,600 in state income taxes
withheld from her paycheck. Upon filing her 2019 tax return on
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