Phyllis,a calendar year cash basis taxpayer who itemized deductions,overpaid her 2010 state income tax and is entitled to a refund of $400.Phyllis chooses to apply the $400 overpayment toward her state income taxes for 2011.She is not required to recognize that amount as income in 2011.

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The Answer of Phyllis,a calendar year cash basis taxpayer who itemized deductions,overpaid her 2010 state income tax and is entitled to a refund of $400.Phyllis chooses to apply the $400 overpayment toward her state income taxes for 2011.She is not required to recognize that amount as income in 2011.

Phyllis,a Calendar Year Cash Basis Taxpayer Who Itemized Deductions,overpaid Her