Shinobu resides in a state that imposes a tax on income.The following information relates to Shinobu's state income tax situation for 2017: $\begin{array}{lr}
\text {Taxes withheld in 2017 }&\$4,300\
\text { State refund received in 2017 of 2016 tax}&700\
\text { Additional assessment paid in 2017 of 2015 tax}&950\
\end{array}$
Assuming she elects to deduct state and local income taxes,what amount should Shinobu use to calculate itemized deductions for her 2017 federal income tax return?
A)$0.
B)$3,600.
C)$5,250.
D)$5,950.

Question

Shinobu resides in a state that imposes a tax on income.The following information relates to Shinobu's state income tax situation for 2017: $\begin{array}{lr}
\text {Taxes withheld in 2017 }&\$4,300\
\text { State refund received in 2017 of 2016 tax}&700\
\text { Additional assessment paid in 2017 of 2015 tax}&950\
\end{array}$
 Assuming she elects to deduct state and local income taxes,what amount should Shinobu use to calculate itemized deductions for her 2017 federal income tax return?
A)$0.
B)$3,600.
C)$5,250.
D)$5,950.

Quizplus · Accepted Answer

Shinobu should use the taxes withheld in 2017 ($4,300) plus the additional assessment paid in 2017 for the 2015 tax ($950), totaling $5,250, for her itemized deductions. The state refund received in 2017 for the 2016 tax does not affect the 2017 deduction calculation.

Shinobu Resides in a State That Imposes a Tax on Income.The