Paul is a single tax paper who files as head of household. In March, he received a refund of the state income tax of $1800 he paid last year. How, much of the refund, if any must Paul include in gross income under the following situations. The standard deduction last year was $18,650

1. Last year Paul claimed itemized deductions of $19,650, which include state income tax paid of $4590.

2. What if Paul claimed itemized deductions were 17,500 which included state income taxes of $4590.