For 2009,Godfrey Had $5,000 in Itemized Deductions for State Income

question 39

Multiple Choice

For 2009,Godfrey had $5,000 in itemized deductions for state income taxes paid.In 2011,Godfrey's 2009 state income tax return was audited and he was required to pay an additional $4,000 of state income taxes.Godfrey was in the 35% tax bracket in 2009,but his marginal tax bracket in 2011 is 15%.He will itemize his deductions on his 2011 return.

• A)The $4,000 payment in 2011 is not deductible.
• B)Godfrey must amend his 2009 return.
• C)The $4,000 payment in 2011 will reduce his 2011 Federal income tax by $600 ($4,000 * 15%).
• D)Godfrey can reduce his 2011 Federal income tax by $1,400 ($4,000 * 35%).
• E)None of the above.