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Business, 03.08.2021 21:50 josecano2

Pierre, a cash basis, unmarried taxpayer, had $5,480 of state income tax withheld during 2020. Also in 2020, Pierre paid $1,370 that was due when he filed his 2019 state income tax return and made estimated payments of $3,836 towards his 2020 state income tax liability. When Pierre files his 2020 Federal income tax return in April 2021, he elects to itemize deductions, which amount to $16,550, including the state income tax payments and withholdings, all of which reduce his taxable income.

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Pierre, a cash basis, unmarried taxpayer, had $5,480 of state income tax withheld during 2020. Also...

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