In 2018, Carlos filed his 2017 state income tax return and paid taxes of $800. Also in 2018, Carlos's employer withheld state income tax of $750 from Carlos's salary. In 2019, Carlos filed his 2018 state income tax return and paid an additional $600 of state income tax due for 2018. How much state income tax can Carlos deduct on his 2018 federal income tax return for state income tax?
A) $1,350
B) $1,400
C) $1,550
D) $2,150
C) $1,550
Carlos will deduct all of the state taxes paid in 2018 (through withholding and payments made with the state return) on his federal income tax return. filed for 2018. $800 + $750 = $1,550. The additional $600 tax paid in 2019 when filing his state return for 2018 will be deducted on his 2019 federal return.
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