In 2018, Lou Sharp, age 35 and single, deducted $5325 on his federal income tax return...

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Question

In 2018, Lou Sharp, age 35 and single, deducted $5325 on his federal income tax return...

In 2018, Lou Sharp, age 35 and single, deducted $5325 on his federal income tax return for medical expenses. In 2019, sharp received a refund in the amount of $875 from his insurance company. How much of the refund must be included in his 2019 gross income?

a. 5325

b. 875

c. 0

d. 750

business accounting

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Answer 1

Answer #1

B) 875

As only unreimbursed expenses can be claimed as deduction and RS. 875 have been received from Insurance Co.

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Answer 2

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