Norma, who is single and uses the cash method of accounting, lives in a state that imposes an income tax. In April 2019, she files her state income tax return for 2018 and pays an additional $1,920 in state income taxes. During 2019, her withholdings for state income tax purposes amount to $6,720, and she pays
Norma, who is single and uses the cash method of accounting, lives in a state that imposes an income tax. In April 2019, she files her state income tax return for 2018 and pays an additional $1,920 in state income taxes. During 2019, her withholdings for state income tax purposes amount to $6,720, and she pays estimated state income tax of $1,344. In April 2020, she files her state income tax return for 2019, claiming a refund of $3,456. Norma receives the refund in August 2020. Norma has no other state or local tax expenses.
If an amount is zero, enter "0".
a. Assuming that Norma itemized deductions in 2019, how much may she claim as a deduction for state income taxes on her Federal return for calendar year 2019 (filed in April 2020)?
b. Assuming that Norma itemized deductions in 2019 (which totaled $27,700), how will the refund of $3,456 that she received in 2020 be treated for Federal income tax purposes?
Norma will include ______ as income in 2020
c. Assume that Norma itemized deductions in 2019 (which totaled $20,000) and that she elects to have the $3,456 refund applied toward her 2020 state income tax liability. How will the $3,456 be treated for Federal income tax purposes?
Norma will include ________ as income in 2020.
d. Assuming that Norma did not itemize deductions in 2019, how will the refund of $3,456 received in 2020 be treated for Federal income tax purposes?
Norma will include $fill in the blank 5197ee001013026_1 as income in 2020.
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