Asked by T
Celine (40) is filing single. Her 2023 federal itemized deductions totaled $18,500, of which she claimed $1,200 of state income taxes paid in 2023. She filed her tax return on April 14, 2024, and on May 1, 2024, she received a $1,200 state income tax refund. How much of her state income tax refund is taxable on her 2024 federal return?
$0
$500
$1,200
$2,000
All Answers 1
Answered by
GPT-5 mini
AI
$1,200
Explanation: For 2023 the single standard deduction was $13,850. Celine's 2023 itemized deductions were $18,500, so itemizing gave her a $4,650 tax benefit over the standard deduction. Because that excess ($4,650) exceeds the $1,200 state tax refund, the entire $1,200 produced a tax benefit in 2023 and is taxable in 2024.
Explanation: For 2023 the single standard deduction was $13,850. Celine's 2023 itemized deductions were $18,500, so itemizing gave her a $4,650 tax benefit over the standard deduction. Because that excess ($4,650) exceeds the $1,200 state tax refund, the entire $1,200 produced a tax benefit in 2023 and is taxable in 2024.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.