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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

FINANCIAL ACCOUNTING
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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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.
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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