During 2011, Mark's employer withheld $2,000 from his wages for state income tax. Mark claimed the $2,000 as an itemized deduction on his 2011 federal income tax return. His total itemized deductions for 2011 were $6,000. Mark's taxable income for 2011 was a negative $20,000. Mark received the $2,000 as a refund from the state during 2012. What amount must Mark include in income in 2012?
A) $0
B) $1,000
C) $2,000
D) $6,000
Answer: A
Tax
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- Income in respect of a cash-basis decedent
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