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Robert Works for American Motors

Question 97

Multiple Choice

Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2016. Robert has an operation on his big toe in 2016 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true for 2016?


A) Robert must claim the $1,200 premium paid by his employer as income.
B) Robert must claim the $6,800 paid by the insurance company for the operation as income.
C) Robert must claim the $1,200 premium and the $6,800 insurance payment as income.
D) None of these events are taxable on his 2016 return.

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