Exercise 10-4 (Algorithmic) (LO. 2) Pierre, a cash basis, unmarried taxpayer, had $3,740 of state Income tax withheld during 2020. Also in 2020, Pierre paid $935 that was due when he filed his 2019 state Income tax return and made estimated payments of $2,618 towards his 2020 state income tax lability. When Pierre files his 2020 Federal income tax return in April 2021, he elects to itemize deductions, which amount to $13,850, Including the state income tax payments and withholdings, all of which reduce his taxable income. a. What is Pierre's 2020 state income tax deduction? 7,293 b. As a result of overpaying his 2020 state Income tax, Pierre receives a refund of $1,496 early in 2021. The standard deduction for single taxpayers for 2020 was $12,400. How much of the $1,496 will Pierre include in his 2021 gross Income? 10,904 X