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In: Accounting

What amount should Weber use as state and local income taxes in calculating itemized deductions for his 2018 Federal income tax return?

Weber resides in a state that imposes a tax on income. The following information relating to Weber's state income taxes is available:

State income taxes withheld in 2018$3,000
State sales taxes paid$650
Refund received in 2018 for 2017 tax$300
Assessment paid in 2018 for 2016 tax$800


What amount should Weber use as state and local income taxes in calculating itemized deductions for his 2018 Federal income tax return?

a.$3,800

b.$3,500

c.$3,000

d.$2,700

e.None of these choices are correct.

Solutions

Expert Solution

The correct answer is a) $3,800.

Supporting calculations:

State Income Taxes Withheld in 2018 $3,000
Add: Assessment paid in 2018 for 2016 tax $800
Amount should Weber use as state and local income taxes in calculating the itemized deductions for 2018 $3,800

Therefore, the itemized deductions for 2018 is $3,800.

ekkarill92 answered 3 years ago
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