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
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 35P
Related questions
Question
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Individual Income Taxes](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT