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 2018?
A) $0
B) $1,400
C) $36,000
D) $3,000
A) $0
$360/day × 140 days = $50,400 is the limit on the exclusion. Since her reimbursement was less than the maximum exclusion, the difference is not taxable.
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Manufacturers must use due care in selecting the materials to be used in a product
Indicate whether the statement is true or false
Which of the following statements is CORRECT?
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