Your Friend Scotty Informs You That He Received a "Tax-Free

question 15

Multiple Choice

Your friend Scotty informs you that he received a "tax-free" reimbursement in 2012 of some medical expenses he paid in 2011.Which of the following statements best explains why Scotty is not required to report the reimbursement in gross income?

• A)Scotty itemized deductions in 2011.
• B)Scotty did not itemize deductions in 2011.
• C)Scotty itemized deductions in 2012.
• D)Scotty did not itemize deductions in 2012.
• E)Scotty itemized deductions in 2012 but not in 2011.

---

Definitions:

Spine

The column of vertebrae extending from the skull to the lower back, serving as a main support for the body and protecting the spinal cord.

Time Tracking

The process of recording and analyzing how much time is spent on various tasks, often used in the context of project management and employee productivity.

QBO Time

A feature or tool within QuickBooks Online (QBO) that tracks billable hours and integrates with payroll and invoicing.

Billable

Refers to work or services performed that can be charged to a client or customer.