Tax Benefit Rule. In 2014, Lou, age 35 and single, deducted $5,325 on his federal income tax return for state income taxes withheld during they year. Lou has excellent vision. In 2015, Lou received an $875 refund from the state. For 2014, Lou deducted $11,504 in itemized deductions. After these deductions, Lous taxable income was $100,000. The 2014 standard deduction for a single taxpayer was $6,200. How much of the refund must Lou include in his 2015 gross income?