Identify the rule that determines whether a taxpayer must include in income a refund of an amount deducted in a previous year:

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The tax benefit rule requires a taxpayer to include in income a refund of an amount deducted in a previous year to the extent that the deduction provided a tax benefit in the prior year. This means that if the deduction resulted in a tax savings in the previous year, the refund must be included in income in the current year to offset that tax benefit.

Identify the Rule That Determines Whether a Taxpayer Must Include