Guy who uses the cash method of accounting, lives in a state that imposes an income tax. During 2020, his withholdings for state income tax purposes amount to $3,550. On April 2, 2020, he files his state return for 2019 and includes a payment of $300 with the return. On April 14, 2021, he files his state return for 2020 and includes a payment of $600 with the return. If he itemizes deductions, how much may he claim as a deduction for state income taxes on his Federal income tax return for calendar year 2020? a. $4,150 b. $3,850 c. $5,150 d. $3,550
Guy who uses the cash method of accounting, lives in a state that imposes an income tax. During 2020, his withholdings for state income tax purposes amount to $3,550. On April 2, 2020, he files his state return for 2019 and includes a payment of $300 with the return. On April 14, 2021, he files his state return for 2020 and includes a payment of $600 with the return. If he itemizes deductions, how much may he claim as a deduction for state income taxes on his Federal income tax return for calendar year 2020? a. $4,150 b. $3,850 c. $5,150 d. $3,550
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Guy who uses the cash method of accounting, lives in a state that imposes an income tax. During 2020, his withholdings for state income tax purposes amount to $3,550. On April 2, 2020, he files his state return for 2019 and includes a payment of $300 with the return. On April 14, 2021, he files his state return for 2020 and includes a payment of $600 with the return. If he itemizes deductions, how much may he claim as a deduction for state income taxes on his Federal income tax return for calendar year 2020?
a. $4,150
b. $3,850
c. $5,150
d. $3,550
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