Felix, a single taxpayer, claimed $180 of state tax as an itemized deduction on his 2014 tax return. The total itemized deductions on his tax return were $6,250. In 2015, he received a $25 refund from the state. What is the amount Felix has to report on his 2015 tax return?

Question

Quizplus · Accepted Answer

Since Felix received a $25 refund in 2015, he must have overpaid $25 of state tax in 2014. This means, he cannot claim the full $180 he originally claimed as an itemized deduction in 2014. Therefore, he must subtract the $25 refund from the $180 deduction and report the remaining $155 as an itemized deduction on his 2015 tax return.

Felix, a Single Taxpayer, Claimed $180 of State Tax as an Itemized