During 2015,Christiana's employer withheld $1,500 from her wages for state income taxes.She claimed the $1,500 as an itemized deduction on her 2015 federal income tax return which included $8,000 of itemized deductions.Christiana is single.On her 2015 state income tax return,her state income tax was $900.As a result,Christiana received a $600 refund in 2016.What amount must Christiana include in income in 2016?

Question

Quizplus · Accepted Answer

Christiana must include in income the amount of state income tax refund that she received in the following year, which is $600. The $1,500 she claimed as an itemized deduction does not have to be included in her income.

During 2015,Christiana's Employer Withheld $1,500 from Her Wages for State