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Exercise 5-27 (Algorithmic) (LO, 3) Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in
Exercise 5-27 (Algorithmic) (LO, 3) Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in 2023. If an amount is zero, enter " 0 ". a. Myrna and Geoffrey filed a joint tax return in 2022. Their AGI was $77,825, and itemized deductions were $27,200, which included $6,800 in state income tax and no other state or local taxes. In 2023 , they received a $5,440 refund of the state income taxes that they paid in 2022 . The standard deduction for married fling jointly in 2022 was $25,900. b. Veronica fied as a single taxpayer in 2022 . Her AGI was $249,500, and itemized deductions were $43,900. Her local property taxes were $15,400 and her state income taxes were $17,200, In 2023 , Veronica received a $3,800 refund of the state income taxes she paid in 2022. The standard deduction for single filers in 2022 was $12,950
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