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

question 2

Multiple Choice

Your friend Scotty informs you that he received a "tax-free" reimbursement in 2018 of some medical expenses he paid in 2017. Which of the following statements best explains why Scotty is not required to report the reimbursement in gross income?

• A) Scotty itemized deductions in 2017.
• B) Scotty did not itemize deductions in 2017.
• C) Scotty itemized deductions in 2018.
• D) Scotty did not itemize deductions in 2018.
• E) Scotty itemized deductions in 2018 but not in 2017.

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Definitions:

Power

The ability or capacity to influence or control the behavior of others or the course of events.

Social Entrepreneurship

A practice that combines innovation, resourcefulness, and opportunity to address critical social and environmental challenges.

Social Enterprise

An organization that operates with the primary goal of addressing social issues, combining commercial strategies with social objectives to improve human and environmental well-being.

Stakeholders

The people or groups affected by or involved with the achievements of the social enterprise’s objectives.