Q7&8

Ian and Isabella, married and filing a joint return, had gross income of $101,000 and paid the following expenses in 2021: - Federal income taxes withheld on wages: $9,000 - State \& local income taxes: $3,000 - Sales tax: $5,000 - Interest on $350,000 mortgage used to purchase principal residence: $3,000 - Deductible student loan interest: $2,000 - Deductible medical expenses (this is the amount after the 7.5\% of AGI floor has been applied): $1,000 I lan and Isabella have proper records to substantiate all expenses. lan and Isabella are not entitled to any qualified business income (Section 199A) deduction. What is lan and Isabella's 2021 AGI? What is their 2021 taxable income? Taxpayer paid state income taxes of $13,000 in 2022. Because of the state and local tax (SALT) deduction limit, the taxpayer's deduction was limited to $10,000. The taxpayer itemized their deductions, but the taxpayer received no tax benefit from the additional $3,000 in state income taxes paid. Taxpayer did not pay any other deductible taxes in 2022. In 2023, taxpayer received a refund of the entire $13,000 in state income taxes paid in 2022. What amount of the $13,000 is included in gross income in 2023? What amount of the refund would be included in gross income if the refund amount was only $6,000 ? What if the refund amount was only $1,000