Juanita,who is single,is in an automobile accident in 2015 and her car sustains $6,200 in damages.Because both drivers received tickets in the accident,Juanita does not expect to recover any of the loss from her insurance company.Juanita's 2015 AGI is $31,000,and she deducts a $3,000 loss on her 2015 tax return.Her other itemized deductions in 2015 exceed $12,000.In 2016,Juanita's insurance company reimburses her $2,800.Juanita's 2016 AGI is $28,000.As a result,Juanita must

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Since Juanita deducted the $3,000 loss on her 2015 tax return and her other itemized deductions exceeded $12,000, she can't amend her 2015 return to reduce the loss to $200. Also, since Juanita received the reimbursement in 2016, she needs to report the $2,800 as income on her 2016 tax return but she doesn't need to amend her 2015 return. Therefore, the best choice is to do nothing to the 2015 return but report $2,800 of income on her 2016 return (option C).

Juanita,who Is Single,is in an Automobile Accident in 2015 and Her