Question

Joyce is a​ single, cash-method taxpayer. On April​ 11, 2017​, Joyce paid $ 120 state income taxes with her 2016 state income tax return. During 2017​, Joyce had $ 1 comma 600 in state income taxes withheld. On April​ 13, 2018​, Joyce paid $ 200 with her 2017 state tax return. During 2018​, she had $ 2 comma 100 in state income taxes withheld from her paycheck. Upon filing her 2018 tax return on April​ 15, 2019​, she received a refund of $ 450 for excess state income taxes withheld. Joyce had total AGI in 2018 and 2019 of $ 51 comma 000 and $ 53 comma 500​, respectively. In 2018​, Joyce also paid $ 10 comma 500 in qualified residence interest. ..​(Click the icon to view the standard deduction​ schedule.). Requirement a. What is the amount of state income taxes Joyce may include as an itemized deduction for 2017​? First select the appropriate labels and then calculate the 2017 itemized deduction for state income taxes. ​(If an input field is not used in the table leave the input​ field(s) empty; do not select a label or enter a​ zero.) 2017 itemized deduction for state income taxes

STANDARD DEDUCTION
Filing Status
Married individuals filing joint returns and surviving spouses		$24,000
Heads of households		18,000
Unmarried individuals (other than surviving spouses and heads of households)		12,000
Married individuals filing separate returns		12,000
Additional standard deduction for the aged and the blind
	Individual who is married and surviving spouses	1,300	*
	Individual who is unmarried and not a surviving spouse	1,600	*
Taxpayer claimed as dependent on another taxpayer’s return: Greater of (1) earned income plus $350 or (2) $1,050.
* These amounts are $2,600 and $3,200, respectively, for a taxpayer who is both aged and blind.

Answer 1

The above question only concentrate in -2017 .I have demonstrated all relevant fact under 2017 . I have not touched 2018 taxable Income( AGI) .

2017 – Joyce is single, cash method taxpayer .

On April 2017,Joyce paid $120 state Income taxes with her 2016 state Income tax return .

During 2017 , Joyce had $1600 in State Income taxes withheld

So in 2017 , Joyce may included the amount of state Tax as an itemized deduction - $120+$1600=$1720

So in 2018 , Joyce may included the amount of state Tax as an itemized deduction -    

On April 2018,Joyce paid $200 state Income taxes with her 2017 state Income tax return .

During 2018, Joyce had $2100 in State Income taxes withheld

So Joyce may include $ 2100 + $200= $ 2300 as itemized deduction

Taxable Income 2018 –

Itemized deduction - $ 2300 as above + Interest ( Qualified residence ) $10500 = $12800

Personal exemption - $ 3650

So taxable Income - $51000-$12800-$3650 = $34550