1. Jordan is a calendar year, cash basis taxpayer. He is single, age 67, not blind, and cannot be claimed as a dependent by anyone else. Based on the following information, what is his taxable income for 2020?

Wages from part-time employment $25,000

Holiday bonus paid in Bitcoin $500

Distribution from a traditional IRA $12,000

Interest on savings account $200

Inheritance received upon death of brother $2,500

Total charitable contributions $5,000

Total state income taxes paid $6,000

		$11,650
		$23,450
		$23,650
		$25,300

11 points

QUESTION 8

1. Tonya; a single, calendar year, cash basis taxpayer; paid state income taxes of $8,000 during 2019. When she filed her 2019 state income tax return in 2020, she received a refund of $900. Her itemized deductions for 2019, which included her state income taxes paid, totaled $12,750. Under the tax benefit rule, how much of the refund must be included in Tonya's 2020 income? Tonya is 37 years old and not blind.

		$450
		$0
		$900
		$550