A review of the 2015 tax file of Gregory,a single taxpayer who is age 40,provides the following information regarding Gregory's 2015 tax status: In 2016,Gregory receives a reimbursement for last year's medical expenses of $1,200.As a result,Gregory must
A)include $200 in gross income for 2016.
B)include $1,200 in gross income for 2016.
C)reduce 2016's medical expenses by $1,200.
D)amend the 2015 return.

Question

A review of the 2015 tax file of Gregory,a single taxpayer who is age 40,provides the following information regarding Gregory's 2015 tax status:  In 2016,Gregory receives a reimbursement for last year's medical expenses of $1,200.As a result,Gregory must
A)include $200 in gross income for 2016. 
B)include $1,200 in gross income for 2016. 
C)reduce 2016's medical expenses by $1,200. 
D)amend the 2015 return.

Quizplus · Accepted Answer

The Answer of A review of the 2015 tax file of Gregory,a single taxpayer who is age 40,provides the following information regarding Gregory's 2015 tax status:  In 2016,Gregory receives a reimbursement for last year's medical expenses of $1,200.As a result,Gregory must
A)include $200 in gross income for 2016. 
B)include $1,200 in gross income for 2016. 
C)reduce 2016's medical expenses by $1,200. 
D)amend the 2015 return.

A Review of the 2015 Tax File of Gregory,a Single