This year Mary received a $600 refund of state income taxes that she deducted on her tax return last year. Mary included a total of $8,450 of state income taxes when she itemized deductions last year. What amount of the refund, if any, should Mary include in her gross income this year?

$600

Explanation:

If instead of itemizing, Mary had elected the standard deduction last year, then she wouldn't have to include any state income tax refund on her current gross income. But since she itemized her deductions and actually deducted these $600 from her gross income last year, she must include them in he current gross income.

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.