Shanika lives in Oregon which imposes a state tax on income.For 2017,Shanika had the following transactions related to her state income taxes: $\begin{array}{lr}
\text {State taxes withheld in 2017 }&\$3,500\
\text {State refund received in 2017 of 2016 tax }&600\\text {Additional assessment paid in 2017 of 2015 tax }&750\
\end{array}$
Shanika plans to itemize on her 2017 return.What amount of state and local taxes should Shanika deduct in calculating itemized deductions for her 2017 federal income tax return?

Question

Shanika lives in Oregon which imposes a state tax on income.For 2017,Shanika had the following transactions related to her state income taxes: $\begin{array}{lr}
\text {State taxes withheld in 2017 }&\$3,500\
\text {State refund received in 2017 of 2016 tax }&600\\text {Additional assessment paid in 2017 of 2015 tax }&750\
\end{array}$
 Shanika plans to itemize on her 2017 return.What amount of state and local taxes should Shanika deduct in calculating itemized deductions for her 2017 federal income tax return?

Quizplus · Accepted Answer

Shanika should deduct the state taxes withheld in 2017 ($3,500) plus the additional assessment paid in 2017 for the 2015 tax ($750), totaling $4,250. The state refund received in 2017 for the 2016 tax does not affect the 2017 deduction.

Shanika Lives in Oregon Which Imposes a State Tax on Income.For