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Carlen is a cash basis taxpayer. In 2 0 2 3 , Carlen paid state income taxes of $ 1 2 , 0 0 0
Carlen is a cash basis taxpayer. In Carlen paid state income taxes of $ In early Carlen filed the state income tax return and received a $ refund. Which of the following statements is true?
a Carlen does not have to worry about the $ refund because refunds are never included in the next year's income under any circumstances. They are exempt from Federal tax.
b If Carlen took the standard deduction on the Federal income tax return, Carlen does not have to include the $ in the Federal gross income.
c If Carlen took the standard deduction on the Federal income tax return, Carlen must include the $ in the Federal gross income.
d If Carlen itemized deductions in on the Federal income tax return and the itemized deductions exceeded the standard deduction by at least $ Carlen must include the $ in the Federal gross income.
e If Carlen itemized deductions in Carlen must amend the Federal income tax return to reduce the itemized deductions.
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