In 2016,Rhonda received an insurance reimbursement for medical expenses incurred in 2015.She is not required to include the reimbursement in gross income in 2016 if she claimed the standard deduction in 2015.

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If Rhonda claimed the standard deduction in 2015, she is considered to have paid no medical expenses in excess of 10% of her adjusted gross income, and therefore the reimbursement is not taxable. However, if she itemized her deductions and deducted her medical expenses in 2015, the reimbursement would be included in her gross income in 2016 to the extent that the reimbursement exceeds the amount of the medical expenses that she actually paid in 2015.

In 2016,Rhonda Received an Insurance Reimbursement for Medical Expenses Incurred