subject - Accounting Exercise 5-26 (LO. 3)Myrna and Geoffrey filed a joint tax return in 2018. Their AGI was $85,000, and itemized deductions were $24,700, which included $7,000in state income tax and no other state or local taxes. In 2019, they received a $1,800 refund of the state income taxes that they paid in2018. The standard deduction for married filing jointly in 2018 was $24,000.Under the tax benefit rule, what amount of the state income tax refund is included in gross income in 2019?|xFeedback✓ Check My WorkIf an income item is within the all-inclusive definition of gross income, the item can be excluded only if the taxpayer can locate specific authorityfor doing so.

As per Internal Revenue Service, Refund of state income tax is taxable in the year of receipt if and…

me tax and no other state or local taxes. In 2019, they received a $1,800 refund of the state income taxes that they paid in andard deduction for married filing jointly in 2018 was $24,000. x benefit rule, what amount of the state income tax refund is included in gross income in 2019? IX

me tax and no other state or local taxes. In 2019, they received a $1,800 refund of the state income taxes that they paid in andard deduction for married filing jointly in 2018 was $24,000. x benefit rule, what amount of the state income tax refund is included in gross income in 2019? IX

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 30CE

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Question

subject - Accounting

Exercise 5-26 (LO. 3)
Myrna and Geoffrey filed a joint tax return in 2018. Their AGI was $85,000, and itemized deductions were $24,700, which included $7,000
in state income tax and no other state or local taxes. In 2019, they received a $1,800 refund of the state income taxes that they paid in
2018. The standard deduction for married filing jointly in 2018 was $24,000.
Under the tax benefit rule, what amount of the state income tax refund is included in gross income in 2019?
|x
Feedback
✓ Check My Work
If an income item is within the all-inclusive definition of gross income, the item can be excluded only if the taxpayer can locate specific authority
for doing so.

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LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on its estimated state income tax for the year. During 2019, the company received a 4,000 refund upon filing its 2018 state income tax return. The company filed its 2019 state income tax return in August 2020 and paid the 7,000 state income tax due for 2019. In December 2019, the company received a notice from the state tax commission that an additional 6,000 of income tax was due for 2017 because of an error on the return. The company acknowledged the error in December 2019 and paid the additional 6,000 in tax in February 2020. What is Ospreys 2019 Federal income tax deduction for state income taxes?
PERSONAL TAXES Joe and Jane Keller are a married couple who file a joint income tax return, where the tax rates are based on the tax tables presented in the chapter. Assume that their taxable income this year was 165,000. a. What is their federal tax liability? b. What is their marginal tax rate? c. What is their average tax rate?
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