Determine amount of itemized deductions


Response to the following problem:

Mimi had $40,000 in federal income taxes withheld in 2013. Because of a sizable amount of itemized deductions, she figured that she had no further tax to pay for the year. For this reason and because of per- sonal problems, and without securing an extension, she did not file her 2013 return until July 1, 2014. Actually, the return showed a refund of $2,400, which Mimi ultimately received. On May 10, 2017, Mimi filed a $16,000 claim for refund of her 2013 taxes.

a. How much of the $16,000 will Mimi rightfully recover?

b. How would your analysis differ if Mimi had secured from the IRS an automatic six-month extension of time for filing her 2013 return?

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Taxation: Determine amount of itemized deductions
Reference No:- TGS02113305

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