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Business, 22.07.2020 21:01 hely7856

Pierre, a cash basis, unmarried taxpayer, had $1,400 of state income tax withheld during 2018. Also in 2018, Pierre paid $455 that was due when he filed his 2017 state income tax return and made estimated payments of $975 towards his 2018 state income tax liability. When Pierre files his 2018 Federal income tax return in April 2019, he elects to itemize deductions, which amount to $15,650, including the $2,830 of state income tax payments and withholdings, all of which reduce his taxable income. As a result of overpaying his 2018 state income tax, Pierre receives a refund of $630 early in 2019. The standard deduction for single taxpayers for 2018 was $12,000. How much of the $630 will Pierre include in his 2019 gross income?

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Pierre, a cash basis, unmarried taxpayer, had $1,400 of state income tax withheld during 2018. Also...

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