Pierre a cash basis unmarried taxpayer had 3830 of state


Pierre, a cash basis, unmarried taxpayer, had $3,830 of state income tax withheld during 2016. Also in 2016, Pierre paid $958 that was due when he filed his 2015 state income tax return and made estimated payments of $2,681 towards his 2016 state income tax liability. When Pierre files his 2016 Federal income tax return in April 2017, he elects to itemize deductions, which amount to $19,150, including the $7,660 of state income tax payments and withholdings, all of which reduce his taxable income. As a result of overpaying his 2016 state income tax, Pierre receives a refund of $1,532 in 2017. The standard deduction for single taxpayers for 2015 was $6,300.

a. What is Pierre’s 2016 state income tax deduction?

b. How much of the $1,532 will Pierre include in his 2017 gross income?

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Pierre a cash basis unmarried taxpayer had 3830 of state
Reference No:- TGS01698879

Expected delivery within 24 Hours