A review of the 2014 tax file of Gregory, a single taxpayer who is age 40, provides the following information regarding Gregory's 2014 tax status: In 2015, Gregory receives a reimbursement for last year's medical expenses of $1,200. As a result, Gregory must
A)include $200 in gross income for 2015.
B)include $1,200 in gross income for 2015.
C)reduce 2015's medical expenses by $1,200.
D)amend the 2014 return.

Question

A review of the 2014 tax file of Gregory, a single taxpayer who is age 40, provides the following information regarding Gregory's 2014 tax status:  In 2015, Gregory receives a reimbursement for last year's medical expenses of $1,200. As a result, Gregory must
A)include $200 in gross income for 2015. 
B)include $1,200 in gross income for 2015. 
C)reduce 2015's medical expenses by $1,200. 
D)amend the 2014 return.

Quizplus · Accepted Answer

The Answer of A review of the 2014 tax file of Gregory, a single taxpayer who is age 40, provides the following information regarding Gregory's 2014 tax status:  In 2015, Gregory receives a reimbursement for last year's medical expenses of $1,200. As a result, Gregory must
A)include $200 in gross income for 2015. 
B)include $1,200 in gross income for 2015. 
C)reduce 2015's medical expenses by $1,200. 
D)amend the 2014 return.

A Review of the 2014 Tax File of Gregory, a Single