Pierre, a cash basis, unmarried taxpayer, had $1,700 of state income tax withheld during 2020. Also in 2020, Pierre paid $425 that was due when he filed his 2019 state income tax return and made estimated payments of $1,190 towards his 2020 state income tax liability. When Pierre files his 2020 Federal income tax return in April 2021, he elects to itemize deductions, which amount to $17,450, including the state income tax payments and withholdings, all of which reduce his taxable income. a. What is Pierre's 2020 state income tax deduction

Respuesta :

Answer:

$3,315

Explanation:

Calculation to determine Pierre's 2020 state income tax deduction

Using this formula.

2020 state income tax deduction=State income tax withheld+State income tax return amount due+State income tax liability

Let plug in the formula

2020 state income tax deduction=$1700+$425+$1190

2020 state income tax deduction=$3,315

Therefore Pierre's 2020 state income tax deduction is $3,315