Question
Hannah is a California taxpayer. She is retired and receives a pension payment of $1,000 during 2017, and then in 2018 receives a letter from
Hannah is a California taxpayer. She is retired and receives a pension payment of $1,000 during 2017, and then in 2018 receives a letter from the pension administrator informing her that an internal audit of the pension computer system revealed that the administrator made a mistake and overpaid the $1,000 benefit in 2017. As such, they now want Hannah to repay (the $1,000 overpayment) by writing a check back to the pension plan in 2018. Under Section 1341, Claim of Right, Hannah is entitled to claim a deduction for what amount of the overpayment on her California income tax return for tax year 2018? Group of answer choices
$500 $600 $1,000 $3,000
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