Nichole, who is single and uses the cash method of accounting, lives in a state that imposes an income tax. In April 2021, she files her state income tax return for 2020 and pays an additional $1,640 in state income taxes. During 2021, her withholdings for state income tax purposes amount to $5,740, and she pays estimated state income tax of $1,148. In April 2022, she files her state income tax return for 2021, claiming a refund of $2,952. Nichole receives the refund in August 2022. Nichole has no other state or local tax expenses.

If an amount is zero, enter "0".

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a. Assuming that Nichole itemized deductions in 2021, how much may she claim as a deduction for state income taxes on her Federal return for calendar year 2021 (filed April 2022)? ______________

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b. Assuming that Nichole itemized deductions in 2021 (which totaled $20,000), how will the refund of $2,952 that she received in 2022 be treated for Federal income tax purposes?

Nichole will include ________ as income in 2022.

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c. Assume that Nichole itemized deductions in 2021 (which totaled $20,000) and that she elects to have the $2,952 refund applied toward her 2022 state income tax liability. How will the $2,952 be treated for Federal income tax purposes?

Nichole will include ___________ as income in 2022.

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d. Assuming that Nichole did not itemize deductions in 2021, how will the refund of $2,952 received in 2022 be treated for Federal income tax purposes?

Nichole will include ________ as income in 2022.