8. A taxpayer receives a refund of state income taxes from the prior year. How should this refund be treated?

a) The refund is always treated as income in the current year.

b) The refund is treated as income in the current year if the taxpayer did not itemize deductions in the year the state taxes were paid.

c) If the taxpayer elected to deduct state general sales tax in the year the taxes were paid, the refund is treated as income in the current year.

d) If the taxpayer elected to deduct state income taxes in the year they were paid, the refund is treated as income in the current year to the extent the deduction produced a tax benefit.