In April 2019, Fred paid $60 of state income tax that was due when he filed his 2018 income tax return. During 2019, Fred’s employer withheld $1,500 of state income tax from his pay. In April 2020, Fred determined that his 2019 state tax liability was on $1,200 and received his state income tax refund of $300 in May 2020. Assuming Fred itemizes, how much state income tax deduction should he report on his 2019 federal income tax return? 

a. $1,200 

b. $1,260 

c. $1,500 

d. $1,560 

e. $900