Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Nonresident Income and Deductions

Summary and Exercises

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.

Wages

$5,800

Personal exemption

$4,050

State income tax

$348

Taxable income

$1,402

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.