Question
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
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 2020. If an amount is zero, enter "0". a. Myrna and Geoffrey filed a joint tax return in 2019. Their AGI was $87,825, and itemized deductions were $29,400, which included $7,350 in state income tax and no other state or local taxes. In 2020, they received a $5,880 refund of the state income taxes that they paid in 2019. The standard deduction for married filing jointly in 2019 was $24,400. $fill in the blank 1 b. Veronica filed as a single taxpayer in 2019. Her AGI was $249,000, and itemized deductions were $41,000. Her local property taxes were $13,800 and her state income taxes were $20,700. In 2020, Veronica received a $4,300 refund of the state income taxes she paid in 2019. The standard deduction for single filers in 2019 was $12,200. $fill in the blank 2
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