Exercise $10-4($Algorithmic$)($LO$.2)$

Pierre, a cash basis, unmarried taxpayer, had $$2,630$ of state income tax withheld during $2021.$ Also in $2021,$ Pierre paid $$658$ that was

due when he filed his $2020$ state income tax return and made estimated payments of $$1,841$ towards his $2021$ state income tax liability.

When Pierre files his $2021$ Federal income tax return in April $2022,$ he elects to itemize deductions, which amount to $$13,050,$ including

the state income tax payments and withholdings, all of which reduce his taxable income.

a$.$ What is Pierre's $2021$ state income tax deduction?

$

b$.$ As a result of overpaying his $2021$ state income tax, Pierre receives a refund of $$1,052$ early in $2022.$ The standard deduction for

single taxpayers for $2021$ was $$12,550.$ How much of the $$1,052$ will Pierre include in his $2022$ gross income?

$