Harvey Itemized Deductions on His 2017 Income Tax Return Assuming He Deducts State and Local Income Taxes, the Above

Harvey itemized deductions on his 2017 income tax return.Harvey plans to itemize deductions again in 2018 and the following information is available regarding state and local income taxes: $$\begin{array} { l r } \text { Taxes withheld in } 2018 & \$ 12,500 \\\text { Refund received in } 2018 \text { for } 2015 \text { tax } & \$ 500 \\\text { Assessment paid in } 2018 \text { for } 2016 \text { tax } & \$ 300\end{array}$$ Assuming he deducts state and local income taxes, the above information should be reported by Harvey in his 2018 tax return as:

A) Itemized deduction for state and local income taxes of $12,500, and income from state and local tax refund of $200
B) Itemized deduction for state and local income taxes of $12,300
C) Itemized deduction for state and local income taxes of $12,800
D) Itemized deduction for state and local income taxes of $10,000 and income from state and local tax refund of $500
E) None of the above

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