me tax and no other state or local taxes. In 2019, they received a $1,800 refund of the state income taxes that they paid in andard deduction for married filing jointly in 2018 was $24,000. x benefit rule, what amount of the state income tax refund is included in gross income in 2019? IX
me tax and no other state or local taxes. In 2019, they received a $1,800 refund of the state income taxes that they paid in andard deduction for married filing jointly in 2018 was $24,000. x benefit rule, what amount of the state income tax refund is included in gross income in 2019? IX
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
subject - Accounting
![Exercise 5-26 (LO. 3)
Myrna and Geoffrey filed a joint tax return in 2018. Their AGI was $85,000, and itemized deductions were $24,700, which included $7,000
in state income tax and no other state or local taxes. In 2019, they received a $1,800 refund of the state income taxes that they paid in
2018. The standard deduction for married filing jointly in 2018 was $24,000.
Under the tax benefit rule, what amount of the state income tax refund is included in gross income in 2019?
|x
Feedback
✓ Check My Work
If an income item is within the all-inclusive definition of gross income, the item can be excluded only if the taxpayer can locate specific authority
for doing so.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F77f4c060-f663-43b5-bf53-770939a63103%2Fcofbeyvi_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 5-26 (LO. 3)
Myrna and Geoffrey filed a joint tax return in 2018. Their AGI was $85,000, and itemized deductions were $24,700, which included $7,000
in state income tax and no other state or local taxes. In 2019, they received a $1,800 refund of the state income taxes that they paid in
2018. The standard deduction for married filing jointly in 2018 was $24,000.
Under the tax benefit rule, what amount of the state income tax refund is included in gross income in 2019?
|x
Feedback
✓ Check My Work
If an income item is within the all-inclusive definition of gross income, the item can be excluded only if the taxpayer can locate specific authority
for doing so.
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