A taxpayer receives $5,000 on their federal return in taxable unemployment income. What is the amount that must be
A taxpayer receives $5,000 on their federal return in taxable unemployment income. What is the amount that must be
Chapter24: Multistate Corporate Taxation
Section: Chapter Questions
Problem 28P
Related questions
Question
1.
Transcribed Image Text:A taxpayer receives $5,000 on
their federal return in taxable
unemployment income. What is
the amount that must be
subtracted from the state return
to calculate the portion taxable to
the State?
A. Potentially a $5,000
subtraction. The amounts need to
have been taxable on the federal
return and administered by
California's EDD to be excludable.
Unemployment received from
other states is still fully taxable in
most cases.
B. $5,000 subtraction - California
does not include amounts
received from any unemployment
source in State income.
C. $0 subtraction - The taxpayer
may, however, claim a credit for
the job search costs to reduce
their taxable exposure to
unemployment income.
D. $0 subtraction - This is taxable
income to the State.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
