(California) A taxpayer gets hit really hard with a respiratory illness and has to take a lot of time off of work. They meet their deductible and then insurance pays the rest. When they're reconciling at the end of the year, they realize that they received $1,500 more than they are able to claim as valid medical expenses. What is the tax implication of these values?

1. If the taxpayer pays all of the premiums themselves, they then do not have to include the excess reimbursement in income.
2. If the employer pays all of the premiums, the taxpayer needs to include the excess in their income
3. if the taxpayer pays part of the premiums themselves, they must include a portion of the excess in their income on a proportional basis.
4. all of the above.