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During the previous year, Carrie paid $500 of estimated state income tax payments, which she also deducted for federal income tax purposes. Early in the
During the previous year, Carrie paid $500 of estimated state income tax payments, which she also deducted for federal income tax purposes. Early in the current year, Carrie received a refund of $300 of these state tax payments. She immediately placed an illegal bet at 5-1 odds and won an additional $1,500. Later in the year, Carrie was short of money and embezzled $4,000 from her employer. How much should Carrie include in her gross income for the current year?
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