QUESTION 17 Robble, a cash-basis single taxpayer, reported $50,000 of adjusted gross income last year and claimed itemized deductions of $13.150. He was able to deduct all of the state income taxes that were withheld from his pay. His itemized deductions exceeded the standard deduction by $1,150. In the current year, Robbie received a $1,500 state tax refund relating to the prior year. What is the proper treatment of the state tax refund? Robbie should amend his prior year return and reduce the itemized deductions by the amount of his refund for that year. Robbie should include the entire 51,500 refund in his gross income for the current year. Robbie should include 51,150 of the refund in his gross income for the current year. Robbie should NOT include any of the refund in his gross income for the current year