Your Friend Scotty Informs You That in 2019 He Received

question 52

Multiple Choice

Your friend Scotty informs you that in 2019 he received a tax-free reimbursement of some medical expenses he paid in 2018.Which of the following statements best explains why Scotty is not required to report the reimbursement in gross income?

• A)Scotty itemized deductions in 2018.
• B)Scotty did not itemize deductions in 2018.
• C)Scotty itemized deductions in 2019.
• D)Scotty did not itemize deductions in 2019.
• E)Scotty itemized deductions in 2019 but not in 2018.

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Definitions:

Tribute

A payment made periodically by one state or ruler to another, especially as a sign of dependence.

Battle of New Orleans

The final major battle of the War of 1812, fought between British forces and American troops led by General Andrew Jackson in January 1815, resulting in a decisive American victory.

Peace Treaty

An agreement between hostile parties, usually countries or governments, to stop fighting and establish peace.

European Forces

Military or political power exerted by European countries, historically significant in various global conflicts, colonization, and international relations.