A. and Paula file as married taxpayers. In August of this year they received a $5,200 refund
Question:
A. and Paula file as married taxpayers. In August of this year they received a $5,200 refund of state income taxes that they paid last year. How much of the refund, if any, must L. A. and Paula include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,700.
a. Last year L. A. and Paula had itemized deductions of $10,200, and they chose to claim the standard deduction.
b. Last year L. A. and Paula claimed itemized deductions of $23,300. Their itemized deductions included state income taxes paid of $7,500.
c. Last year L. A. and Paula claimed itemized deductions of $15,500. Their itemized deductions included state income taxes paid of $10,500.
Step by Step Answer:
Taxation Of Individuals And Business Entities 2019 Edition
ISBN: 9781259918391
10th Edition
Authors: Brian C. Spilker, Benjamin C. Ayers, John Robinson, Edmund Outslay, Ronald G. Worsham, John A. Barrick, Connie Weaver