Norma, who is single and uses the cash method of accounting, lives in a state that imposes an income tax. In April 2020, she files her state income tax return for 2019 and pays an additional $1,780 in state income taxes. During 2020, her withholdings for state income tax purposes amount to $6,230, and she pays estimated state income tax of $1,246. In April 2021, she files her state income tax return for 2020, claiming a refund of $3,204. Norma receives the refund in August 2021. Norma has no other state or local tax expenses.

If an amount is zero, enter "0".

a. Assuming that Norma itemized deductions in 2020, how much may she claim as a deduction for state income taxes on her Federal return for calendar year 2020 (filed April 2021)? $_____________

b. Assuming that Norma itemized deductions in 2020 (which totaled $27,700), how will the refund of $3,204 that she received in 2021 be treated for Federal income tax purposes?

Norma will include $___________ as income in 2021.

c. Assume that Norma itemized deductions in 2020 (which totaled $20,000) and that she elects to have the $3,204 refund applied toward her 2021 state income tax liability. How will the $3,204 be treated for Federal income tax purposes?

Norma will include $ __________ as income in 2021.

d. Assuming that Norma did not itemize deductions in 2020, how will the refund of $3,204 received in 2021 be treated for Federal income tax purposes?

Norma will include $___________ as income in 2021.