Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

22. Tonya is a cash basis taxpayer. In 2017, she paid state income taxes of $8,000. In early 2018, she filed her 2017 state income

22. Tonya is a cash basis taxpayer. In 2017, she paid state income taxes of $8,000. In early 2018, she filed her 2017 state income tax return and received a $900 refund.

a. If Tonya itemized her deductions in 2017 on her Federal income tax return, she should amend her 2017 return and reduce her itemized deductions by $900.

b. If Tonya itemized her deductions in 2017 on her Federal income tax return and her itemized deductions exceeded the standard deduction by at least $900, the refund will not affect her 2018 tax return.

c. If Tonya itemized her deductions in 2017 on her Federal income tax return, she must amend her 2017 Federal income tax return and use the standard deduction.

d. If Tonya itemized her deductions in 2017 on her Federal income tax return and her itemized deductions exceeded the standard deduction by more than $900, she must recognize $900 income in 2018 under the tax benefit rule.

e. None of these.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analysis For Financial Management

Authors: Robert Higgins

7th Edition

0072863641, 9780072863642

More Books

Students also viewed these Finance questions

Question

Define intercultural conflict

Answered: 1 week ago