Norma, who is single and uses the cash method of accounting, lives in a state that imposes an income tax. In April 2016, she files her state income tax return for 2015 and pays an additional $3,860 in state income taxes. During 2016, her withholdings for state income tax purposes amount to $13,510, and she pays estimated state income tax of $2,702. In April 2017, she files her state income tax return for 2016, claiming a refund of $6,948. Norma receives the refund in August 2017.

a. Assuming that Norma itemized deductions in 2016, how much may she claim as a deduction for state income taxes on her Federal return for calendar year 2016 (filed April 2017)?

b. Assuming that Norma itemized deductions in 2016 (which totaled $20,000), how will the refund of $6,948 that she received in 2017 be treated for Federal income tax purposes?

c. Assume that Norma itemized deductions in 2016 (which totaled $20,000) and that she elects to have the $6,948 refund applied toward her 2017 state income tax liability. How will the $6,948 be treated for Federal income tax purposes?

d. Assuming that Norma did not itemize deductions in 2016, how will the refund of $6,948 received in 2017 be treated for Federal income tax purposes?