A review of the 2018 tax file of Gregory, a single taxpayer who is age 40, provides the following information regarding Gregory's 2018 tax status:
Adjusted gross income $40,000
Medical expenses (before percentage limit) $5,000
Itemized deductions other than medical $10,200
2018 potential standard deduction $12,000
In 2019, 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 2019.
B) include $1,200 in gross income for 2018.
C) reduce 2018's medical expenses by $1,200
D) amend the 2018 return.
A) include $200 in gross income for 2019.
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