Phyllis, who is single, has itemized deductions totaling $20,000.She overpaid her 2018 state income tax and is entitled to a refund of $400 in 2019.Phyllis chooses to apply the $400 overpayment toward her state income taxes for 2019.She is required to recognize that amount as income in 2019.

Question

Quizplus · Accepted Answer

The overpayment of state income tax is considered income in the year it is refunded.

Phyllis, Who Is Single, Has Itemized Deductions Totaling $20,000