Claim of right deductions are treated how between the federal and state returns? (Choose the most appropriate answer for both)

If the amount of the repayment is over $3,000, it can be itemized or taken as a credit on both the federal and state returns. Otherwise, any deductions for amounts under $3,000 are only able to be added to the state itemized deductions and the federal disallowed.

If the amount of the repayment is over $3,000 it can be taken as a deduction on the state return, but otherwise has no federal tax impact.

If the amount of the repayment is under $3,000, it can be taken as a deduction on both the federal and state returns as an itemized deduction. If the amount is over $3,000, then it can be taken as a deduction or credit on both the federal and state returns.

If the amount of the repayment is over $3,000 then the amount can be taken as a deduction or credit on both the federal and state returns. If the amount is under $3,000 it is not able to be deducted on either the federal or the state return.