Nichole, who is single and uses the cash method of accounting, lives in a state that imposes an income tax. In April 2022, she files her state income tax return for 2021 and pays an additional $1,000 in state income taxes. During 2022, her withholdings for state income tax purposes amount to $7,400, and she pays estimated state income tax of $700. In April 2023, she files her state income tax return for 2022, claiming a refund of $1,800. Nichole receives the refund in August 2023. Nichole has no other state or local tax expenses.

a. Assuming that Nichole itemized deductions in 2022, how much may she claim as a deduction for state income taxes on her Federal return for calendar year 2022 (filed April 2023)?

b. Assuming that Nichole itemized deductions in 2022 (which totaled $20,000), how will the refund of $1,800 that she received in 2023 be treated for Federal income tax purposes?

c. Assume that Nichole itemized deductions in 2022 (which totaled $20,000) and that she elects to have the $1,800 refund applied toward her 2023 state income tax liability. How will the $1,800 be treated for Federal income tax purposes?

d. Assuming that Nichole did not itemize deductions in 2022, how will the refund of $1,800 received in 2023 be treated for Federal income tax purposes?