What amount must the taxpayer include in gross income in 2014?

384 views
0

An unmarried taxpayer itemized deductions in 2013. The taxpayer’s itemized deductions were $6,650; the standard deduction amount was $6,100. Included in the taxpayer’s itemized deductions were $3,700 of state income tax withheld. In 2014, the taxpayer receives an $800 refund check from the state government. What amount must the taxpayer include in gross income in 2014?

0

Answer : $ 550

According to the tax benefit rule, received a $550 tax benefit.

$6,650 itemized deductions less $6100 standard deduction.

the refund is not taxable

You are viewing 1 out of 0 answers, click here to view all answers.

Contact us today

Ask for our academic services

Copyright SmartStudyHelp 2016. All Rights Reserved