Federal income tax return for state income tax


Problem:

In 2011, Carlos filed his 2010 state income tax return and paid taxes of $800. Also in 2011, Carlos's employer withheld state income tax of $750 from Carlos's salary. In 2012, Carlos filed his 2011 state income tax return and paid an additional $600 of state tax.

Required:

Question: How much state income tax can Carlos deduct on his 2011 federal income tax return for state income tax?

a. $1,350

b. $1,400

c. $1,550

d. $2,150

Note: Please show the work not just the answer.

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Accounting Basics: Federal income tax return for state income tax
Reference No:- TGS0883370

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