Problem $3-39($LO $3-3)$

Each of the following taxpayers received a state income tax refund in $2024.$ In all cases, the taxpayer has a filing status of married filing jointly. The standard deduction in $2023$ was $$27,700.$

Required:

What amount of the refund is properly included in $2024$ income?

Refund of $$746$; taxpayer did not itemize deductions in $2023.$

Refund of $$676$; taxpayer had $$28,840$ of itemized deductions in $2023.$

Refund of $$978$; taxpayer had itemized deductions of $$28,340$ in $2023.$