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 2014?

Question

Quizplus · Accepted Answer

Since Nelda's reimbursed amount ($36,000) exceeds the actual nursing home charges ($33,000), she does not have to include any amount in her gross income. This is because the excess amount is considered a reimbursement for medical expenses and is not taxable income. Therefore, the correct answer is option A ($0).

Nelda Suffered a Serious Stroke and Was Admitted to a Nursing