Question 4 of 4
Nigel, who is from England, had $348 of state income tax withheld in 2017. His total income was $5,800 in 2017. The deduction of the state income taxes helped reduce his taxable income, as illustrated below.
Nigel received a $22 state income tax refund in 2018 on his 2017 state return. He should report it as income on his 2018 tax return.