Example: Hermione is a single taxpayer who files HoH. In April, she received a refund of state income tax of $2,000 that she paid last year. How much of the refund, if any, must Hermione include in gross income under the following independent scenarios? Assume the standard deduction last year was $18,650. a. Last year Hermione claimed itemized deductions of $19,650, which included state income taxes paid of $4,000. b. Last year Hermione claimed itemized deductions of $22,650, which included state income taxes paid of $5,000. c. Last year Hermione had itemized deductions of $17,650, which included state income taxes paid of $4,00