Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

L. A. and Paula file as married taxpayers. In August of this year, they received a $6,420 refund of state income taxes that they paid

L. A. and Paula file as married taxpayers. In August of this year, they received a $6,420 refund of state income taxes that they paid last year. How much of the refund, if any, must L. A. and Paula include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,700.

a. Last year L. A. and Paula had itemized deductions of $10,820, and they chose to claim the standard deduction.

b. Last year L. A. and Paula claimed itemized deductions of $26,550. Their itemized deductions included state income taxes paid of $8,360.

c. Last year L. A. and Paula claimed itemized deductions of $18,050. Their itemized deductions included state income taxes paid of $14,700.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

8th edition

978-1118953815, 978-1118953907

More Books

Students also viewed these Accounting questions