Exercise 5-26 (Algorithmic) (LO. 3) Apply the tax benefit rule to determine the amount of the...

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Exercise 5-26 (Algorithmic) (LO. 3) Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in 2022. If an amount is zero, enter "0". a. Myrna and Geoffrey filed a joint tax return in 2021. Their AGI was $72,825, and itemized deductions were $29,700, which included $7,425 in state income tax and no other state or local taxes. In 2022, they received a $5,940 refund of the state income taxes that they paid in 2021. The standard deduction for married filing jointly in 2021 was $25,100. b. Veronica filed as a single taxpayer in 2021. Her AGI was $242,000, and itemized deductions were $46,300. Her local property taxes were $13,900 and her state income taxes were $18,700. In 2022, Veronica received a $4,000 refund of the state income taxes she paid in 2021. The standard deduction for single filers in 2021 was $12,550. Exercise 5-26 (Algorithmic) (LO. 3) Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in 2022. If an amount is zero, enter "0". a. Myrna and Geoffrey filed a joint tax return in 2021. Their AGI was $72,825, and itemized deductions were $29,700, which included $7,425 in state income tax and no other state or local taxes. In 2022, they received a $5,940 refund of the state income taxes that they paid in 2021. The standard deduction for married filing jointly in 2021 was $25,100. b. Veronica filed as a single taxpayer in 2021. Her AGI was $242,000, and itemized deductions were $46,300. Her local property taxes were $13,900 and her state income taxes were $18,700. In 2022, Veronica received a $4,000 refund of the state income taxes she paid in 2021. The standard deduction for single filers in 2021 was $12,550.