This year Mary received a $485 refund of state income taxes that she deducted on...

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Accounting

This year Mary received a $485 refund of state income taxes that she deducted on her tax return last year. Mary included a total of $5,250 of state income taxes
when she itemized deductions last year. What amount of the refund, if any, should Mary include in her gross income this year?
Multiple Choice
$485 is included because Mary itemized her deductions last year.
None of the choices are correct - refunds of state income taxes are not included in gross income.
$485 is included even if Mary claimed the standard deduction.
$485 is included because itemized deductions exceeded the standard deduction.
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