Exercise
10-4
(Algorithmic)
(LO.
2)
Pierre,
a
cash
basis,
unmarried
taxpayer,
had
$2,510
of
state
income
tax
withheld
during
2023.
Also
in
2023,
Pierre
paid
$628
that
was
due
when
he
filed
his
2022
state
income
tax
return
and
made
estimated
payments
of
$1,757
towards
his
2023
state
income
tax
liability.
When
Pierre
files
his
2023
Federal
income
tax
return
in
April
2024,
he
elects
to
itemize
deductions,
which
amount
to
$18,600,
including
the
state
income
tax
payments
and
withholdings,
all
of
which
reduce
his
taxable
income.
a.
What
is
Pierre's
2023
state
income
tax
deduction?
=
0\\\
‘\'Qxes
"
2,510+
08
+),757
b.
As
a
result
of
overpaying
his
2023
state
income
tax,
Pierre
receives
a
refund
of
$1,004
early
in
2024. The
standard
deduction
for
single
taxpayers
for
2023
was
$13,850.
How
much
of
the
$1,004
will
Pierre
include
in
his
2024
gross
income?
s_1,004]v
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My
Work
Cash
basis
taxpayers
deduct
state
income
taxes
in
the
year
paid
regardless
of
the
year
to
which
the
payment
relates.
