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This year Bill received a $900 refund of state income taxes that he paid last year. Last year Bill claimed itemized deductions of $15,000 including

This year Bill received a $900 refund of state income taxes that he paid last year. Last year Bill claimed itemized deductions of $15,000 including $2,800 of state income taxes. How much of the refund, if any, must Bill include in gross income if the standard deduction last year was $12,400?

A. $0

B. $900

C. $1,000

D. $2,800

E. $6,300

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