Rachel Reeves has medical insurance coverage from her employer's medical insurance policy. The annual premium is $2,000 for Rachel's coverage, of which Rachel's employer pays 75 percent. Rachel pays the rest. In 2012, Rachel received an excess reimbursement of $200 from her insurance company. What amount must Rachel include in her gross income?

Question

Quizplus · Accepted Answer

Section 105(a) provides that excess reimbursements from medical insurance must be included in gross income to the extent they were attributable to contributions by the employer.

Rachel Reeves Has Medical Insurance Coverage from Her Employer's Medical