Harvey Itemized Deductions on His 2018 Income Tax Return and Was

question 79

Multiple Choice

Harvey itemized deductions on his 2018 income tax return and was able to deduct all state and local income taxes paid. Harvey plans to itemize deductions again in 2019 and the following information is available regarding state and local income taxes: $\begin{array}{lr}\text { Taxes witheld in } 2019 & \$ 12,500 \\\text { Refund received in } 2019 \text { for } 2018 \text { tax } & \$ 500 \\\text { Assessment paid in } 2019 \text { for } 2017 \text { tax } & \$ 300\end{array}$ Assuming he deducts state and local income taxes, the above information should be reported by Harvey in his 2019 tax return as:

• A)Itemized deduction for state and local income taxes of $12,500, and income from state and local tax refund of $200
• B)Itemized deduction for state and local income taxes of $12,300
• C)Itemized deduction for state and local income taxes of $12,800
• D)Itemized deduction for state and local income taxes of $10,000 and income from state and local tax refund of $500
• E)None of these

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Definitions:

Customer

A person or organization that buys goods or services from a store or business.

Company

An entity formed to engage in a business, trade, or industrial activity, typically characterized by its legal independence and ownership structure.

Customer Relationship Management

A strategy for managing an organization's interactions with current and potential customers, often using data analysis to study large amounts of information.

Shopping Patterns

The behaviors and tendencies displayed by consumers when selecting, purchasing, and using goods and services.