Question
This year Bill received a $900 refund of state income taxes that he overpaid last year. He paid SALT $9,000 in last year. Last year
This year Bill received a $900 refund of state income taxes that he overpaid last year. He paid SALT $9,000 in last year. Last year Bill claimed standard deductions of $12,400 (he had $11,200 itemized deduction that was smaller than standard deduction). How much of the refund, if any, must Bill include in gross income?
A. $0
B. $450
C. $650
D. $900
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting
Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian Edition volume 2
013269008X, 978-0133122855, 133122859, 978-0132690089
