A taxpayer who deducted $900 of medical expenses last year must include in gross income no more than $900 of any medical expense reimbursement received this year.

Question

Quizplus · Accepted Answer

This is true according to IRS Publication 502, which states that if a taxpayer deducted medical expenses in a previous year and receives reimbursement for those expenses in a later year, the taxpayer must include in gross income no more than the amount of the deduction taken in the previous year.

A Taxpayer Who Deducted $900 of Medical Expenses Last Year