In 2015,Rhonda received an insurance reimbursement for medical expenses incurred in 2014.She is not required to include the reimbursement in gross income in 2015 if she claimed the standard deduction in 2014.

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The reimbursement is included in gross income only to the extent the taxpayer derived a tax benefit from deducting the expense in the previous year.Because Rhonda did not itemize in 2014,she received no tax benefit.

In 2015,Rhonda Received an Insurance Reimbursement for Medical Expenses Incurred