Tom and Betsy, who are married filing jointly, reported a standard deduction of $12,600 on their 2015 tax return. They paid $500 to the state for income taxes in 2015. In 2016, they received a $125 refund of state taxes paid in 2015. What is the amount that Tom and Betsy need to report on their 2016 tax return? $375 $0 $125 $500