Jenny,an individual cash basis taxpayer,has $6,000 of state income taxes withheld from her salary during 2016.When she filed her 2015 state income tax return during April 2016,she paid an additional $500 in state income taxes.When she filed her 2016 state income tax return in April 2017,she received a $200 refund.What is her state income tax deduction for 2016 for federal income tax purposes?
A)$500
B)$5,800
C)$6,000
D)$6,300
E)$6,500

Question

Quizplus · Accepted Answer

Jenny can deduct the total amount of state income taxes paid in 2016, which includes the $6,000 withheld and the additional $500 paid, totaling $6,500. The refund received in 2017 does not affect the 2016 deduction.

Jenny,an Individual Cash Basis Taxpayer,has $6,000 of State Income Taxes