State income tax return

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Reference no: EM13149204

Tonya is a cash basis taxpayer. In 2010, she paid state income taxes of $5,000. In early 2011, she filed her 2010 state income tax return and recieved a $500 refund.

a) If she itemized her deductions in 2010 on her federal income tax return and her itemized deductions exceed the standard deductions by at least $500, she must include the $500 in her 2011 Federal gross income.

b) If she took the standard deduction on her 2010 federal income tax return, she must include the $500 in her 2011 federal gross income.

c) If she itemized her deductions in 2010, she must amend her 2010 federal income tax return to reduce her itemized deductions

d) If she took the standard deduction on her 2010 Federal income tax return, she must amend her 2010 tax return

e) none of the above

Reference no: EM13149204

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