During 2013,Robert and Cassie Had $2,600 Withheld from Their Pay

question 93

Multiple Choice

During 2013,Robert and Cassie had $2,600 withheld from their pay for state income taxes.They file a joint return for 2013 and claimed the $2,600 taxes withheld as an itemized deduction on their federal tax return.Their itemized deductions totaled $12,800 on their 2013 tax return.Their 2013 state income tax was only $1,000 and they received a refund of $1,600 when they filed their state income tax return in 2014.As a result,Robert and Cassie must

• A)amend 2013's federal tax return.
• B)report income of $600 in 2014.
• C)report income of $1,600 in 2014.
• D)reduce their deduction for state income taxes for 2014 by $1,600.

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