Calvin miscalculated his income in 2011 and overpaid his state income tax by $10,000.In 2013,he amended his 2011 state income tax return and received a $10,000 refund and $900 interest.Calvin itemized his deductions in 2011,deducting $12,000 in state income tax and $30,000 total itemized deductions.As a result of the amended return in 2013,Calvin must recognize $10,900 of gross income.

Question

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Calvin overpaid his state income tax in 2011 by $10,000, and when he received a refund of $10,000 and $900 interest in 2013, he must recognize it as gross income, totaling $10,900. This is a correct statement.

Calvin Miscalculated His Income in 2011 and Overpaid His State