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Hannah is a California taxpayer. She is retired and receives a pension payment of $ 1 , 0 0 0 during 2 0 2 2

Hannah is a California taxpayer. She is retired and receives a pension payment of $1,000 during 2022, and then in 2023 receives a letter from the pension administrator informing her that an internal audit of the pension computer system revealed that the administrator made a mistake and overpaid the $1,000 benefit in 2022. As such, they now want Hannah to repay (the $1,000 overpayment) by writing a check back to the pension plan in 2023. Under Section 1341, Claim of Right, Hannah is entitled to claim a deduction for what amount of the overpayment on her California income tax return for tax year 2023?
A. $500
B. $600
C. $1,000
D. $3,000

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