Calvin miscalculated his income in 2013 and overpaid his state income tax by $10,000.In 2015,he amended his 2013 state income tax return and received a $10,000 refund and $900 interest.Calvin itemized his deductions in 2013,deducting $12,000 in state income tax and $30,000 total itemized deductions.As a result of the amended return in 2015,Calvin must recognize $10,900 of gross income.

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Calvin received a refund of $10,000 and $900 interest, which means he received a total of $10,900 from the state. Since he overpaid his state income tax in 2013, the $10,000 overpayment was not included in his gross income at that time. However, when he received the refund in 2015, he must recognize it as income, which brings his total gross income to $10,900.

Calvin Miscalculated His Income in 2013 and Overpaid His State