Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Pierre, a cash basis, unmarried taxpayer, had $4,730 of state income tax withheld during 2020. Also in 2020, Pierre paid $1,183 that was due when
Pierre, a cash basis, unmarried taxpayer, had $4,730 of state income tax withheld during 2020. Also in 2020, Pierre paid $1,183 that was due when he filed his 2019 state income tax return and made estimated payments of $3,311 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 $15,650, 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? $ b. As a result of overpaying his 2020 state income tax, Pierre receives a refund of $1,892 early in 2021. The standard deduction for single taxpayers for 2020 was $12,400. How much of the $1,892 will Pierre include in his 2021 gross income
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66903487384df_66266903486cf161.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started