Randy is a single individual who receives a salary of $30,000.During 2017,he has $7,000 withheld for payment of his federal income taxes and $2,500 for his state income taxes.In 2076,he receives a $400 refund after filing his 2017 federal tax return and a $50 refund after filing his state tax return.
I.Randy is allowed a deduction for the $2,500 of state taxes withheld from his salary on his 2017 federal tax return.
II.If Randy has total itemized deductions of $6,400 on his 2016 federal tax return,he must include the $50 state tax refund in his 2017 gross income.

Question

Randy is a single individual who receives a salary of $30,000.During 2017,he has $7,000 withheld for payment of his federal income taxes and $2,500 for his state income taxes.In 2076,he receives a $400 refund after filing his 2017 federal tax return and a $50 refund after filing his state tax return.
I.Randy is allowed a deduction for the $2,500 of state taxes withheld from his salary on his 2017 federal tax return.
II.If Randy has total itemized deductions of $6,400 on his 2016 federal tax return,he must include the $50 state tax refund in his 2017 gross income.
​

Quizplus · Accepted Answer

Randy can deduct state taxes withheld from his salary on his federal tax return. If he itemized deductions in 2016 and received a state tax refund, he must include the refund in his 2017 gross income.

Randy Is a Single Individual Who Receives a Salary of $30,000.During