nnのCPA試験の旅 in Hawaii CPA試験の旅 in Hawaii

Hello again!

by nn_77
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31

タグ:Tax Benefit ( 1 ) タグの人気記事

--- 【Question from yuwa-san】------------------------------------------
Hello, nn this is last question...

4)Refund of tax itemized deduction
For example, if I deduct a state tax as itemized deduction this year, the refund of the tax next year is recognized as taxable income. If I adopt standard deduction, this does not happen. Does this occur because I deducted actual tax payment and took benefit, so the I can't take any benefit next year and have to recognize the refund as income. The standard deduction is fixed amount and there is no any benefit like itemized deduction. I'm not quite sure about this point? Do you have any clue?

Hi, yuwa. This is about tax benefit rule.
As is well known, when you adopt the itemized deduction for a certain year, state tax payment in the year is deducted from taxable income. This is “benefit” for you because the amount of taxable income for the year is decreased by the amount of state tax paid.
But such amount of state tax used to calculate the amount of the itemized deduction is not always the full amount of “tax benefit” that you enjoyed.

For example,
State income tax: 800
Other itemized deduction: 7,500
Total itemized deduction: 8,300

And, suppose the amount of Standard deduction for this year is 8,000, then, the actual tax benefit brought by the adoption of itemized deduction in this case is just 300.

So, even if, say, 500 of the 800 state tax paid is refunded on the following year, only 300 (i.e. the gap between 8,300 and 8,000, which is the tax benefit you enjoyed in the previous year) of the 500 is included in the taxable income of the following year.

If you have any further inquiry, please don't hesitate to contact me here.

なんちゃって、Written Communicationみたいに締めくくってみましたが(笑)、また、何かあればおっしゃてください。 それでは、また。
by nn_77 | 2009-04-16 23:03 | >REG | Comments(1)