Jenny, an individual cash basis taxpayer, has $6,000 of state income taxes withheld from her salary during 2018. When she filed her 2017 state income tax return during April 2018, she paid an additional $500 in state income taxes. When she filed her 2018 state income tax return in April 2019, she received a $200 refund. What is her state income tax deduction for 2018 for federal income tax purposes?

Question

Quizplus · Accepted Answer

Jenny can deduct the total amount of state income taxes paid in 2018, which includes the $6,000 withheld and the additional $500 paid when filing her 2017 return, totaling $6,500. The refund received in 2019 does not affect the 2018 deduction.

Jenny, an Individual Cash Basis Taxpayer, Has $6,000 of State