Problem
In 2024 Ani, a single taxpayer, chooses the itemized deductions for her 2023 federal income tax return. Ani deducts a total of $14,000 in itemized deductions, including $8,500 in state and local taxes paid in 2023. Later, after filing her 2023 state income tax return, Ani receives a $1,000 refund related to state income tax paid in 2023. (The $1,000 is part of the $8,500 in taxes included in her itemized deductions for the 2023 federal income tax return.) Considering current tax rules, how will the state income tax refund affect Ani's 2024 federal gross income?