Question
Tim is a single, cash-method taxpayer with an AGI of $50,000. In April of this year, Tim paid $840 with his state income tax return
Tim is a single, cash-method taxpayer with an AGI of $50,000. In April of this year, Tim paid $840 with his state income tax return for the previous year. During the year, Tim had $4,450 of state income tax and $16,050 of federal income tax withheld from his salary. In addition, Tim made estimated payments of $1,070 and $1,640 for state and federal income taxes, respectively. Finally, Tim expects to receive a refund of $405 for state income taxes when he files his state tax return for this year in April next year. What is the amount of taxes that Tim can deduct as an itemized deduction?
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