A. and Paula file as married taxpayers. In August of this year they received a $5,200 refund

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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.

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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

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