In June of Year 2, Vasilia received a state income tax refund of $500 for overpayment of state income tax in Year 1. Vasilia deducted $1,800 of state income tax on Form 1040 for Year 1, making Vasilias itemized deductions exceed the applicable standard deduction in Year 1 by $300. What amount, if any, of the state income tax refund is taxable on Vasilias Year 2 Form 1040? A) $0 B) $200 C)$300 D) $500