If your client received a refund of state taxes in 2014, s/he may have to report all or part of this amount as income if s/he itemized deduction and claimed state taxes as a deduction. Do not report the state tax refund as income if it was for a tax paid in a year for which your client did not itemize deductions on Schedule A. Mr. and Mrs. Chuang received $804 state tax refund in 2014 (Form 1099-G). Their itemized deductions for 2013 Schedule A line 29 was $34, 625. Mr. & Mrs. Chuang file Married Filing Jointly. How much will they be required to declare on their Form 1040? $-0- $402 $655 $804