Frank Lanier is a resident of a state that imposes a tax on income. The following information pertaining to Lanier’s state income taxes is available:
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Taxes withheld in 2007 |
$3,500 |
|
|
Refund received in 2007 of 2006 tax |
400 |
|
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Deficiency assessed and paid in 2007 for 2005: |
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Tax |
600 |
|
|
Interest |
100 |
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What amount should Lanier utilize as state and local income taxes in calculating itemized deductions for his 2007 federal tax return?
- $3,500
- $3,700
- $4,100
- $4,200