Sarika(35) is single. Her 2020 federal itemized deductions totaled $14,400, of which she claimed $1,000 of state income taxes paid in 2020. She filed her tax return on April 10, 2021, and on May 1, 2021, she received a $1,000 state income tax refund. How much of her 2020 state refund is taxable on her 2021 federal return? $0 $500 $1,000 $2,000
Sarika(35) is single. Her 2020 federal itemized deductions totaled $14,400, of which she claimed $1,000 of state income taxes paid in 2020. She filed her tax return on April 10, 2021, and on May 1, 2021, she received a $1,000 state income tax refund. How much of her 2020 state refund is taxable on her 2021 federal return? $0 $500 $1,000 $2,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sarika(35) is single. Her 2020 federal itemized deductions totaled $14,400, of which she claimed $1,000 of state income taxes paid in 2020. She filed her tax return on April 10, 2021, and on May 1, 2021, she received a $1,000 state income tax refund. How much of her 2020 state refund is taxable on her 2021 federal return?
$0
$500
$1,000
$2,000
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