Harvey itemized deductions on his 2019 income tax return and was able to deduct all state and local income taxes paid. Harvey plans to itemize deductions again in 2020 and the following information is available regarding state and local income taxes: Taxes withheld in 2020 $12,500 Refund received in 2020 for 2019 tax $500 Assessment paid in 2020 for 2018 tax $300 Assuming he deducts state and local income taxes, the above information should be reported by Harvey in his 2020 tax return as: a.Itemized deduction for state and local income taxes of $12,800 b.Itemized deduction for state and local income taxes of $12,300 c.Itemized deduction for state and local income taxes of $12,500, and income from state and local tax refund of $200 d.Itemized deduction for state and local income taxes of $10,000 and income from state and local tax refund of $500 e.None of these choices are correct.
Harvey itemized deductions on his 2019 income tax return and was able to deduct all state and local income taxes paid. Harvey plans to itemize deductions again in 2020 and the following information is available regarding state and local income taxes: Taxes withheld in 2020 $12,500 Refund received in 2020 for 2019 tax $500 Assessment paid in 2020 for 2018 tax $300 Assuming he deducts state and local income taxes, the above information should be reported by Harvey in his 2020 tax return as: a.Itemized deduction for state and local income taxes of $12,800 b.Itemized deduction for state and local income taxes of $12,300 c.Itemized deduction for state and local income taxes of $12,500, and income from state and local tax refund of $200 d.Itemized deduction for state and local income taxes of $10,000 and income from state and local tax refund of $500 e.None of these choices are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Harvey itemized deductions on his 2019 income tax return and was able to deduct all state and local income taxes paid. Harvey plans to itemize deductions again in 2020 and the following information is available regarding state and local income taxes:
Assuming he deducts state and local income taxes, the above information should be reported by Harvey in his 2020 tax return as:
| Taxes withheld in 2020 | $12,500 |
| Refund received in 2020 for 2019 tax | $500 |
| Assessment paid in 2020 for 2018 tax | $300 |
Assuming he deducts state and local income taxes, the above information should be reported by Harvey in his 2020 tax return as:
a.Itemized deduction for state and local income taxes of $12,800
b.Itemized deduction for state and local income taxes of $12,300
c.Itemized deduction for state and local income taxes of $12,500, and income from state and local tax refund of $200
d.Itemized deduction for state and local income taxes of $10,000 and income from state and local tax refund of $500
e.None of these choices are correct.
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