Brad, who uses the cash method of accounting, lives in a state that imposes an income tax (including withholding from wages). On April 14, 2019, he files his state return for 2018, paying an additional $600 in state income taxes. During 2019, his withholdings for state income tax purposes amount to $3,550. On April 13, 2020, he files his state return for 2019 claiming a refund of $800. Brad receives the refund on June 3, 2020. If he itemizes deductions, how much may Brad claim as a deduction for state income taxes on his Federal income tax return for calendar year 2019 (filed in April 2020) ? a.$3,550 b.$3,350 c.$5,150 d.$4,150 e. None of these choices are correct.

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Business

Skylar Cantu

13 January, 00:12

Brad, who uses the cash method of accounting, lives in a state that imposes an income tax (including withholding from wages). On April 14, 2019, he files his state return for 2018, paying an additional $600 in state income taxes. During 2019, his withholdings for state income tax purposes amount to $3,550. On April 13, 2020, he files his state return for 2019 claiming a refund of $800. Brad receives the refund on June 3, 2020. If he itemizes deductions, how much may Brad claim as a deduction for state income taxes on his Federal income tax return for calendar year 2019 (filed in April 2020) ? a.$3,550 b.$3,350 c.$5,150 d.$4,150 e. None of these choices are correct.

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Abagail Dixon · Answer 1

d.$4,150

Explanation:

The computation of the deduction amount claimed for the calendar year is shown below:

= Additional amount paid in state income taxes in the year 2018 + withholding for state income tax purposes

= $600 + $3,550

= $4,150

For computing the deduction amount we added the Additional amount paid in state income taxes and the withholding for state income tax purposes.

All other information which is given is not relevant. Hence, ignored it