Question

Kurstie received a $800 state income tax refund this year. Kurstie deducted $3,000 of state income...

Kurstie received a $800 state income tax refund this year. Kurstie deducted $3,000 of state income taxes paid in the prior year as part of her itemized deductions. Which of the following statements regarding the taxability of Kurstie’s refund is true?

a. If Kurstie’s itemized deductions exceeded the standard deduction by $200, then the $800 refund is included in gross income.

b. If Kurstie’s itemized deductions exceeded the standard deduction by $200, then $200 of the refund is included in gross income.

c. If Kurstie claimed the standard deduction instead, then the $800 refund is taxable.

d. Kurstie must include $3,000 in gross income in the current year.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
This year Kelsi received a $1,900 refund of state income taxes that she paid last year....
This year Kelsi received a $1,900 refund of state income taxes that she paid last year. She had paid $2,800 of state income taxes last year. The standard deduction amount last year was $12,200 How much of the $1,900 refund, if any, must Kelsi include in gross income this year, under each of the following independent assumptions? a. If her total itemized deductions last year were $13,300, including $2,800 of state income taxes TAXABLE REFUND = b. If her total...
Louis files as a single taxpayer. In April of this year he received a $1,200 refund...
Louis files as a single taxpayer. In April of this year he received a $1,200 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,000. a. Last year Louis claimed itemized deductions of $12,095. Louis’s itemized deductions included state income taxes paid of $2,075 and no other state or local taxes. b. Last year...
Louis files as a single taxpayer. In April of this year he received a $900 refund...
Louis files as a single taxpayer. In April of this year he received a $900 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the standard deduction last year was $12,000. (Leave no answer blank. Enter zero if applicable.) a. Last year Louis claimed itemized deductions of $12,250. Louis’s itemized deductions included state income taxes paid of $1,750 and no...
L. A. and Paula file as married taxpayers. In August of this year, they received a...
L. 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 $24,000. (Leave no answer blank. Enter zero if applicable.) a. Last year L. A. and Paula had itemized deductions of $19,200, and they chose to...
If the state's tax calculation starting point is federal adjusted gross income, then __________, The state...
If the state's tax calculation starting point is federal adjusted gross income, then __________, The state calculation of taxable income may exclude the taxpayer's standard or itemized deductions as claimed at the federal level. The state calculation of taxable income includes the taxpayer's standard or itemized deductions as claimed at the federal level. The state has conformed without exception, by the legislature, to the current IRC. Both choice B and C are true.
Brad, who uses the cash method of accounting, lives in a state that imposes an income...
Brad, who uses the cash method of accounting, lives in a state that imposes an income tax (including withholding from wages). On April 14, 2016, he files his state return for 2015, paying an additional $600 in state income taxes. During 2016, his withholdings for state income tax purposes amount to $3,550. On April 13, 2017, he files his state return for 2016, claiming a refund of $800. Brad received the refund on August 3, 2017. a) If Brad itemized...
Paul is single, age 33 and earned a salary of $70,000. In 2019, Paul received a...
Paul is single, age 33 and earned a salary of $70,000. In 2019, Paul received a state tax refund of $2,000 based upon his 2018 state tax return. Paul itemized deductions in 2018 on his federal tax return which included a deduction only State income taxes. Paul's potential itemized deductions for the current year are as follows: medical expenses $4,000 Charitable contributions $500 Mortgage interest $1,000 Real estate taxes $11,000 Calculate Paul's taxable income for 2019 and Paul's income tax...
Problem 5-55 (LO. 3) How does the tax benefit rule apply in the following cases? a....
Problem 5-55 (LO. 3) How does the tax benefit rule apply in the following cases? a. In 2015, the Orange Furniture Store, an accrual method taxpayer, sold furniture on credit for $1,000 to Sammy. The cost of the furniture was $600. In 2016, Orange took a bad debt deduction for the $1,000. In 2017, Sammy inherited some money and paid Orange the $1,000 he owed. Orange was in the 35% marginal tax bracket in 2015, the 15% marginal tax bracket...
For the TAX YEAR 2018, Robert and Serena received in social security $36000. In addition to...
For the TAX YEAR 2018, Robert and Serena received in social security $36000. In addition to their social security benefits, they had earned income of $66250 and interest income of $50. Their state refund from 2017 was $600. They had a deduction for AGI of $2000. 1. Determine the amount of taxable social security benefits. Use the 1040 worksheet. 2. Determine the Adjusted Gross Income. 3. Determine the standard or itemized deduction amount based on the following info A. Medical...
Components to Taxable Income Terminology Match the terms relating to the basic terminology and concepts of...
Components to Taxable Income Terminology Match the terms relating to the basic terminology and concepts of personal taxation on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description Adjustments    A. This is taxed as ordinary income if held...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT