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6 September, 17:28

In 2019, Carlos filed his 2018 state income tax return and paid taxes of $800. Also in 2019, Carlos's employer withheld state income tax of $750 from Carlos's salary. In 2020, Carlos filed his 2019 state income tax return and paid an additional $600 of state income tax due for 2019. How much state income tax can Carlos deduct on his 2019 federal income tax return for state income tax?

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  1. 6 September, 17:35
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    He can deduct on his 2019 federal income tax return for state income tax $1,550

    Explanation:

    According to the given data, we can conclude that Carlos cannot deduct the addition of $600 of state income until next year.

    Therefore, in order to calculate how much state income tax can Carlos deduct on his 2019 federal income tax return for state income tax we would need to make the following calculation

    income tax to deduct on 2019 federal income tax return = Taxes paid + withheld state income tax from salary

    income tax to deduct on 2019 federal income tax return = $800 + $750 income tax to deduct on 2019 federal income tax return=$1,550.
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