During 2017, Christiana's employer withheld $1,500 from her wages for state income taxes. She claimed the $1,500 as an itemized deduction on her 2017 federal income tax return which included $9,000 of itemized deductions (the 2017 standard deduction was $6,350). Christiana is single. On her 2017 state income tax return, her state income tax was $900. As a result, Christiana received a $600 refund in 2018. What amount must Christiana include in income in 2018?

Question

Quizplus · Accepted Answer

Christiana must include the $600 refund in her 2018 income because she received a tax benefit from deducting the full $1,500 in 2017, as her itemized deductions exceeded the standard deduction.

During 2017, Christiana's Employer Withheld $1,500 from Her Wages for State