Question
Tim is a single, cash-method taxpayer with one personal exemption and an AGI of $50,000. In April of this year, Tim paid $1,000 with his
Tim is a single, cash-method taxpayer with one personal exemption and an AGI of $50,000. In April of this year, Tim paid $1,000 with his state income tax return for the previous year. During the year, Tim had $4,850 of state income tax and $17,250 of federal income tax withheld from his salary. In addition, Tim made estimated payments of $1,150 and $1,800 of state and federal income taxes, respectively. Finally, Tim expects to receive a refund of $445 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?
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