Molly deducted $7,000 of state income taxes on her federal income tax return last year. This year she received a state income tax refund of \$1.100 due to overpaying her state income taxes last year. What amount of the refund, if any, should Molly include in her gross income for the current year if last year her total itemized deductions exceeded the standard deduction by $2,500 ? 0,$7,000 1.$1,100 c. 50 d. $2,500