Shanika lives in California which imposes a state tax on income.For 2014,Shanika had the following transactions related to her state income taxes: State taxes withheld in 2014 $3,500
Refund received in 2014 of 2013 tax 600
Assessment paid in 2014 of 2013 tax 750
Shanika plans to itemize on her 2014 return.What amount of state and local taxes should Shanika deduct in calculating itemized deductions for her 2014 federal income tax return?

Question

Quizplus · Accepted Answer

Shanika can deduct the state taxes withheld in 2014 of $3,500, the refund received in 2014 of 2013 taxes of $600, and the assessment paid in 2014 of 2013 taxes of $750. Thus, the total amount of state and local taxes Shanika should deduct in calculating itemized deductions for her 2014 federal income tax return is $3,500 + $600 + $750 = $4,250.

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