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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Definitions:

Capital

Resources made and used to produce and distribute goods and services; examples include machinery, buildings, and tools.

Firms

Business organizations that produce goods or services, often to make a profit.

Tariffs

Taxes imposed on imported goods, often to protect domestic industries or to raise government revenue.

Subsidizing Exports

Financial support provided by governments to domestic companies to lower their production costs and make their exports more competitive on the global market.