Calvin miscalculated his income in 2014 and overpaid his state income tax by $10,000.In 2016,he amended his 2014 state income tax return and received a $10,000 refund and $900 interest.Calvin itemized his deductions in 2014,deducting $12,000 in state income tax and $30,000 total itemized deductions.As a result of the amended return in 2016,Calvin must recognize $10,900 of gross income.

Question

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Calvin received a $10,000 refund and $900 interest on his overpaid state income tax, resulting in a total of $10,900 of gross income that he must recognize in 2016.

Calvin Miscalculated His Income in 2014 and Overpaid His State