What is Pierre state income tax deduction

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Problem - Pierre, a cash basis, unmarried taxpayer, had $1,400 of state income tax withheld during 2019. Also in 2019, Pierre paid $455 that was due when he filed his 2018 state income tax return and made estimated payments of $975 toward his 2019 state income tax liability. When Pierre files his 2019 Federal income tax return in April 2020, he elects to itemize deductions, which amount to $15,650, including the state income tax payments and withholdings, all of which reduce his taxable income.

Required -

a. What is Pierre's 2019 state income tax deduction?

b. As a result of overpaying his 2019 state income tax, Pierre receives a refund of $630 early in 2020. The standard deduction for single taxpayers for 2019 was $12,200. How much of the $630 will Pierre include in his 2020 gross income?

 

Reference no: EM132658116

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