Manny received a $500 state income tax refund this year. Manny deducted $2,800 of state income taxes paid in the prior year as part of his itemized deductions when his itemized deductions exceeded the standard deduction by $1,200. His deduction for taxes paid was NOT limited by the SALT cap. How much of the $500 refund must Manny include in his gross income this year?

Manny received a $500 state income tax refund this year. Manny deducted $2,800 of state income taxes paid in the prior year as part of his itemized deductions when his itemized deductions exceeded the standard deduction by $1,200. His deduction for taxes paid was NOT limited by the SALT cap. How much of the $500 refund must Manny include in his gross income this year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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