Tonya is a cash basis taxpayer. In 2020, she paid state income taxes of $8,000and property taxes of $5,500. In early 2021, she filed her 2020 state income tax return and received a $900 refund.

A.If Tonya itemized her deductions in 2020 on her Federal income tax return, she should amend her 2020 return and reduce her itemized deductions by $900.

B.If Tonya itemized her deductions in 2020 on her Federal income tax return, the refund will not affect her 2021 tax return.

C.If Tonya itemized her deductions in 2020 on her Federal income tax return, she must amend her 2020 Federal income tax return and use the standard deduction.

D.If Tonya itemized her deductions in 2020 on her Federal income tax return and her itemized deductions exceeded the standard deduction by more than $900, she must recognize $900 income in 2021 under the tax benefit rule.