In 2023, Rachel received an insurance reimbursement for medical expenses incurred in 2022. She is not required to include the reimbursement in gross income in 2023 if she claimed the standard deduction in 2022.

true or false

Georgia contributed $2,000 to a qualifying Health Savings Account in the current year. The entire amount qualifies as an expense deductible for AGI.

true or false

Harrison is the sole proprietor of a furniture store. He can deduct real property taxes on his store building as a business deduction but he cannot deduct state income taxes related to his net income from the furniture store as a business deduction.

true or false

In April 2023, Bertha, a calendar year cash basis taxpayer, had to pay the state of Michigan additional income tax for 2022. Even though it relates to 2022, for Federal income tax purposes, the payment qualifies as a tax deduction for tax year 2023.

true or false