Pedro, a cash basis, unmarried taxpayer, had $1,400 of state income tax withheld during 2020. Also in 2020, he paid $455 that was due when he filed his 2019 New York State income tax return and made estimated payments of $975 toward his 2020 state income tax liability. When Pedro files his 2020 Federal income tax return in April 2021, he elects to itemize deductions, which amount to $15,650, including the NYS income tax payments and withholdings, all of which reduce his taxable income.

a. What is Pedros 2020 state income tax deduction?

b. As a result of overpaying his 2020 state income tax, he receives a refund of $630 early in 2021. The standard deduction for single taxpayers for 2020 was $12,400. How much of the

$630 will Pedro include in his 2021 gross income?