Rebecca and Gregory, a married couple filing a joint return, reported adjusted gross income of $70,000 and total allowable itemized deductions of $24,900, including $3,100 for state income taxes, in 2019. They received a $1,000 refund of state income taxes in April 2020. How much of the state income tax refund must be included in their income and in which year do they include it?
Rebecca and Gregory, a married couple filing a joint return, reported adjusted gross income of $70,000 and total allowable itemized deductions of $24,900, including $3,100 for state income taxes, in 2019. They received a $1,000 refund of state income taxes in April 2020. How much of the state income tax refund must be included in their income and in which year do they include it?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rebecca and Gregory, a married couple filing a joint return, reported adjusted gross income of $70,000 and total allowable itemized deductions of $24,900, including $3,100 for state income taxes, in 2019. They received a $1,000 refund of state income taxes in April 2020. How much of the state income tax refund must be included in their income and in which year do they include it?
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