(a) Amy, a single taxpayer, had New York State taxes withheld of 10,500 in 2018. Her actual

New York State tax liability for 2018 was 9,100. As a result, her New York State return for 2018,

filed on April 15, 2019, reflected an overpayment of 1400 which she asked to have refunded. She

received that refund on May 21, 2019. On her federal return, the only other itemized deduction was

mortgage interest paid of 8,000. What are the federal tax consequences from the refund of New

York State income taxes?

(b) Instead of receiving a refund, Amy asked that the overpayment of 1400 be applied to her 2019 New

York State tax liability. What federal consequences?