Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pierre, a cash basis, unmarried taxpayer, had $3,200 of state income tax withheld during 2020. Also in 2020, Pierre paid $800 that was due when

image text in transcribed

Pierre, a cash basis, unmarried taxpayer, had $3,200 of state income tax withheld during 2020. Also in 2020, Pierre paid $800 that was due when he filed his 2019 state income tax return and made estimated payments of $2,240 towards his 2020 state income tax liability. When Pierre files his 2020 Federal income tax return in April 2021, he elects to itemize deductions, which amount to $13,400, including the state income tax payments and withholdings, all of which reduce his taxable income. a. What is Pierre's 2020 state income tax deduction? 6,240 S b. As a result of overpaying his 2020 state income tax, Pierre receives a refund of $1,280 early in 2021. The standard deduction for single taxpayers for 2020 was $12,400. How much of the $1,280 will Pierre include in his 2021 gross income? 1,280 X

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

Introduction To Management Accounting Chapters 1 To 17

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Dave Burgstahler, Jeff Schatzberg

15th Edition

0136102654, 978-0136102656

More Books

Students also viewed these Accounting questions