The Ryans has a tax liability of $22,309 on their 2008 Federal Income Tax return. They received a check in the amount of $3,700 from the US treasury as a refund on thier 2008 Federal Tax return on July 17, 2009. The Ryans reported a tax liability of $4,400 on their 2008 Kansas income tax return. They paid an income tax deficiency of $535 to the Kansas Department of Revenue when they filed their return. The Ryans did deduct all Kansas income taxes on Schedule A on their 2008 Federal income tax return. The Ryans reported no carryforward on their 2008 Federal income tax return. What is the amount of income tax refund to be included in their 2009 income tax return? How should they report the $535 tax deificiency they paid to the Kansas Department of revenue?