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In 2015, Lou, age 35 and single, deducted $5,325 on his federal income tax return for state income taxes withheld during the year. Lou has
In 2015, Lou, age 35 and single, deducted $5,325 on his federal income tax return for state income taxes withheld during the year. Lou has excellent vision. In 2016, Lou received an $875 refund from the state. For 2015, Lou deducted $11,604 in itemized deductions. After these deductions, Lous taxable income was $100,000. The 2015 standard deduction for a single taxpayer was $6,300. How much of the refund must Lou include in his 2016 gross income?
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