Joanne, a Single Individual, Has $2,000 in State Taxes Withheld

Joanne, a single individual, has $2,000 in state taxes withheld from her salary in 2018. Her total itemized deductions are $12,200. She claims the $2,000 as an itemized deduction on her 2018 tax return. In 2019 she receives a state income tax refund of $700. Under the tax benefit rule she has to report income in 2019 of

A) $2,000
B) $ 700.
C) $ 200.
D) $ -0-.
E) $ -0-, but Joanne must file an amended 2018 tax and reduce her itemized deductions by $700.