This year Mary received a $200 refund of state income taxes that she deducted on her tax return last year Mary included a total of $4,000 of state income taxes when she itemized deductions last year What amount of the refund, if any, should Mary include in her gross income this year A $200 is inclu...

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This year Mary received a $200 refund of state income taxes that she deducted on her tax

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This year Mary received a $200 refund of state income taxes that she deducted on her tax return last year. Mary included a total of $4,000 of state income taxes when she itemized deductions last year. What amount of the refund, if any, should Mary include in her gross income this year?
A.$200 is included even if Mary claimed the standard deduction.
B.$200 is included if itemized deductions exceeded the standard deduction by $200.
C.$200 is included because itemized deductions exceeded the standard deduction.
D.$200 is included because Mary itemized her deductions last year.
E.None of the choices are correct - refunds of state income taxes are not included in gross income.

Posted Date: Jun 22, 2024 04:05 PM

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This year Mary received a $200 refund of state income taxes that she deducted on her tax

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