Rodrigo has $5,000 of state income taxes withheld from his salary during 2017. On his 2017 income tax return, Rodrigo properly deducts the $5,000 as state taxes paid. Upon filing his 2017 state tax return on April 15, 2018, he determines that his actual State income tax for 2017 is only $4,100. He receives a $900 refund on May 25, 2018 from the amounts withheld by the state. What concept(s), construct(s), or doctrine(s) dictate that the $900 is included in Rodrigo's 2018 income?
I.Annual Accounting Period Concept.
II.Tax Benefit Rule.

Question

Rodrigo has $5,000 of state income taxes withheld from his salary during 2017. On his 2017 income tax return, Rodrigo properly deducts the $5,000 as state taxes paid. Upon filing his 2017 state tax return on April 15, 2018, he determines that his actual State income tax for 2017 is only $4,100. He receives a $900 refund on May 25, 2018 from the amounts withheld by the state. What concept(s), construct(s), or doctrine(s) dictate that the $900 is included in Rodrigo's 2018 income?
I.Annual Accounting Period Concept.
II.Tax Benefit Rule.
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Quizplus · Accepted Answer

The Answer of Rodrigo has $5,000 of state income taxes withheld from his salary during 2017. On his 2017 income tax return, Rodrigo properly deducts the $5,000 as state taxes paid. Upon filing his 2017 state tax return on April 15, 2018, he determines that his actual State income tax for 2017 is only $4,100. He receives a $900 refund on May 25, 2018 from the amounts withheld by the state. What concept(s), construct(s), or doctrine(s) dictate that the $900 is included in Rodrigo's 2018 income?
I.Annual Accounting Period Concept.
II.Tax Benefit Rule.
​

Rodrigo Has $5,000 of State Income Taxes Withheld from His