Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in 2021.

a. Myrna and Geoffrey filed a joint tax return in 2020. Their AGI was $85,000, and itemized deductions were $25,500, which included $7,000 in state income tax and no other state or local taxes. In 2021, they received a $1,800 refund of the state income taxes they paid in 2020. The standard deduction for married filing jointly in 2020 was $24,800.

b. Veronica filed as a single taxpayer in 2020. Her AGI was $230,000, and itemized deductions were $42,000. Her local property taxes were $13,000, and her state income taxes were $17,000. In 2021, Veronica received a $2,100 refund of the state income taxes she paid in 2020. The standard deduction for single filers in 2020 was $12,400.