FEDERAL TAX

Matthew deduciod 52,000 of state incoma taros on his lox retum last year. This year he received a stale income tax refund of $900. What amount of the refund, if any, should

Matthew include in his gross income if last year his toll itemized deductions exceeded the slandard deduction by $1,500?

- $500

- None of these - refunds of stale Income taxes are not included in gross income

- $595

- $2000

- $900