Phyllis,a Calendar Year Cash Basis Taxpayer Who Itemized Deductions Totaling

True/False

Phyllis,a calendar year cash basis taxpayer who itemized deductions totaling $20,000,overpaid her 2015 state income tax and is entitled to a refund of $400 in 2016.Phyllis chooses to apply the $400 overpayment toward her state income taxes for 2016.She is required to recognize that amount as income in 2016.