Randy Is a Single Individual Who Receives a Salary of $30,000.During

question 140

Multiple Choice

Randy is a single individual who receives a salary of $30,000.During 2017,he has $7,000 withheld for payment of his federal income taxes and $2,500 for his state income taxes.In 2076,he receives a $400 refund after filing his 2017 federal tax return and a $50 refund after filing his state tax return.
I.Randy is allowed a deduction for the $2,500 of state taxes withheld from his salary on his 2017 federal tax return.
II.If Randy has total itemized deductions of $6,400 on his 2016 federal tax return,he must include the $50 state tax refund in his 2017 gross income.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

State Implementation Plan

A document prepared by states in which the emissions to the air from individual sources are limited legally so that the area will meet the national ambient air quality standards.

Clean Air Act

A comprehensive federal law in the United States that regulates air emissions from stationary and mobile sources to control air pollution.

National Ambient Air Quality Standards

Federally established air pollution standards designed to protect the public health and welfare.

Permit System

A regulatory system that requires individuals or entities to obtain permission, usually from a government authority, before undertaking certain activities.