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:

General Duty

An obligation or requirement that one must adhere to in a specific role or context, often implying a standard level of care or responsibility.

Causation

The relationship between an action and its effect, where the action is considered to be a contributing factor to the outcome or injury.

Negligence

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, leading to harm or damage.

Res Ipsa Loquitur

A legal principle that infers negligence from the very nature of an accident or injury, in the absence of direct evidence on how any defendant behaved.