Jim received a $500 refund of state income taxes this year. Jim will not need to include the $500 in his gross income this year if he did not deduct state income taxes last year.

Question

Quizplus · Accepted Answer

If Jim did not deduct state income taxes last year, he did not receive any tax benefit from those taxes and thus does not need to include the refund in his gross income this year.

Jim Received a $500 Refund of State Income Taxes This