Required Informetion The tollowing information applies to he questions displeyed

Question

Required Informetion The tollowing information applies to he questions displeyed below Lours files as a single taxpayer In Apni of this year he received a $1,400 refund of stabe income taxes that he paid last year How much of the refund, if any must Louls include in gross income under the following independent scenanos? Assume the standard deduction lest year was $6,300. (Leave no answer blank. Enter zero If appliceblej . Lact year Lous clesmed temized deductions of $6.359 Louts's temized deducsions inciuded state income taxes paid of $2.530 Reference nks TOSHIBA 2 3 4 5 7 8 9 0 W E RTYUO S DFGHKL

Explanation / Answer

Louis received tax benefit of -

(i) Refund = $1,400; Or

(ii) Excess of itemized deductions over standard deductions = $6,359 - $6300 = $59

Whichever is less, i.e., benefit of $59.

Therefore, louis must include $59 of his refund of $1,400 in gross income.

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