The taxpayer was in the 35% marginal tax bracket in 2017 and deducted $15,000 in state income taxes as an itemized deduction that year. In 2018, he filed his 2017 state income tax return and received a $5,000 refund of state income taxes paid in 2017. His marginal tax rate in 2018 was 12%. What was the taxpayer's Federal tax benefit from the overpayment of his 2017 state income tax?

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The Answer of The taxpayer was in the 35% marginal tax bracket in 2017 and deducted $15,000 in state income taxes as an itemized deduction that year. In 2018, he filed his 2017 state income tax return and received a $5,000 refund of state income taxes paid in 2017. His marginal tax rate in 2018 was 12%. What was the taxpayer's Federal tax benefit from the overpayment of his 2017 state income tax?

The Taxpayer Was in the 35% Marginal Tax Bracket in 2017