Walter deducted $4,400 of state income taxes as an itemized…
Walter deducted $4,400 of state income taxes as an itemized deduction on his tax return last year. This year he received a state income tax refund of $400. Last year, his itemized deductions were $25,000. Assume the standard deduction amount for last year was $24,400. What amount of the refund, if any, is taxable this year to Walter?
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