Answer:
The correct answer is letter "A": True.
Explanation:
Some State income tax refunds may in some cases be taxable income, according to the Internal Revenue Service (IRS). These must be recorded in the Form 1040 only in the situation where the taxpayer sought a deduction of the previous year's state and local taxes if they were itemized. Generally, state and local income tax deductions are not specified when standard deductions are filed.
