Bart & Lisa file as a married filing jointly. In March of this year they received a $1,200 refund from the state of Utah for income taxes that they paid in the preceding year. In each of the following independent scenarios, calculate the amount of the refund that Bart must include as taxable income. (Assume a $12,600 standard deduction in the prior year)
a) Last year Bart & Lisa claimed itemized deductions of $13,350. Their itemized deductions included state income taxes paid of $2,850.
b) Last year Bart & Lisa had itemized deductions of $12,560 and they chose to claim the standard deduction. Their itemized deductions included state income taxes paid of $2,850.
c) Last year Bart & Lisa claimed itemized deductions of $16,230. Bart's itemized deductions included state income taxes paid of $2,850.
a) $450
b) $700
c) $900
d) $1,200