Federal income tax return for calendar year


Dirk, who uses the cash method of accounting, lives in a state that imposes an income tax (including withholding from wages). On April 14, 2011, he files his state return for 2010, paying an additional $800 in state income taxes. During 2011, his withholdings for state income tax purposes amount to $4,550. On April 13, 2012, he files his state return for 2011, claiming a refund of $900. Dirk receives the refund on August 3, 2012. If he itemizes deductions, how much may Dirk claim as a deduction for state income taxes on his Federal income tax return for calendar year 2011 (filed in April 2012)?

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Accounting Basics: Federal income tax return for calendar year
Reference No:- TGS066789

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