A Review of the 2017 Tax File of Gregory,a Single

question 21

Multiple Choice

A review of the 2017 tax file of Gregory,a single taxpayer who is age 40,provides the following information regarding Gregory's 2017 tax status:

In 2018,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 2018.
• B) include $1,200 in gross income for 2018.
• C) reduce 2018's medical expenses by $1,200.
• D) amend the 2018 return.

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Definitions:

Prescription Medications

Drugs that are legally available only with an order from a licensed healthcare professional.

Teratogen

An agent or factor that causes malformation of an embryo or fetus, such as certain drugs, infections, or chemicals.

Genotype Susceptibility

The predisposition of individuals with certain genotypes to develop specific diseases or health conditions.

Dose Effect

The relationship between the dose of a drug or agent and its overall effect on the body, indicating how incremental doses increase or decrease the response.