1-1

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. $

1-2

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 $89,325, and itemized deductions were $28,600, which included $22,880 in state income tax and no other state or local taxes. In 2020, they received a $13,728 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 $233,000, and itemized deductions were $47,900. Her local property taxes were $13,300 and her state income taxes were $20,300. In 2020, Veronica received a $2,900 refund of the state income taxes she paid in 2019. The standard deduction for single filers in 2019 was $12,200. $