In April 2020, Fred paid $40 of state income tax that was due when he filed his 2019 income tax return. During 2020, Fred’s employer withheld $1,200 of state income tax from his pay. In April 2021, Fred determined that his 2020 state tax liability was $1,100 and received his state income tax refund of $100 in May 2021. Assuming Fred itemizes, how much state income tax deduction should he report on his 2020 federal income tax return?
a. $1,200
b. $1,240
c. $1,100
d. $1,140
e. $1,000