Kate itemizes in 2013. Included in her itemized deductions is $2,900 for state income taxes. Her other itemized deductions total $3,550. Kate's standard deduction amount in 2013 would have been $6,100. In 2014, Kate receives a refund from the state for $500. Which of the following best describes how Kate should handle the refund on her tax return? A)Kate amends her 2013 tax return and deducts only $2,400 for state income taxes B)Kate reduces her state income tax deduction in 2014 by $500 C)Kate includes $500 in gross income in 2014 D)Kate includes $350 in gross income in 2014 E) None of the above