Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in 2021. If an amount is zero, enter "0". a.  Myrna and Geoffrey filed a joint tax return in 2020. Their AGI was $85,000, and itemized deductions were $25,500, which included $7,000 in state income tax and no other state or local taxes. In 2021, they received a $1,800 refund of the state income taxes that they paid in 2020. The standard deduction for married filing jointly in 2020 was $24,800. $fill in the blank 1 b.  Veronica filed as a single taxpayer in 2020. Her AGI was $230,000, and itemized deductions were $42,000. Her local property taxes were $13,000 and her state income taxes were $17,000. In 2021, Veronica received a $2,100 refund of the state income taxes she paid in 2020. The standard deduction for single filers in 2020 was $12,400. $fill in the blank 2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in 2021.

If an amount is zero, enter "0".

a.  Myrna and Geoffrey filed a joint tax return in 2020. Their AGI was $85,000, and itemized deductions were $25,500, which included $7,000 in state income tax and no other state or local taxes. In 2021, they received a $1,800 refund of the state income taxes that they paid in 2020. The standard deduction for married filing jointly in 2020 was $24,800.
$fill in the blank 1

b.  Veronica filed as a single taxpayer in 2020. Her AGI was $230,000, and itemized deductions were $42,000. Her local property taxes were $13,000 and her state income taxes were $17,000. In 2021, Veronica received a $2,100 refund of the state income taxes she paid in 2020. The standard deduction for single filers in 2020 was $12,400.
$fill in the blank 2

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