Nelda suffered a serious stroke and was admitted to a nursing home for 140 days.Nursing home charges,including physician fees and other related expenses were $33,000.Under Nelda's long-term care insurance contract,she received reimbursements of $36,000.How much of the $36,000 reimbursement must be included in Nelda's gross income in 2019?

Question

Quizplus · Accepted Answer

Since the reimbursements exceeded the actual expenses, there is no taxable income to report. Therefore, Nelda would not include any of the $36,000 reimbursement in her gross income for 2019.

Nelda Suffered a Serious Stroke and Was Admitted to a Nursing