Kathy is a single taxpayer. She had the following unreimbursed medical expenses for 2018: $5,000 of medical expenses related to an auto accident. She expects the other driver's auto insurance to reimburse her $3,000 of the expenses in early 2019. $1,000 prepayment to an orthodontist for braces she will receive in early 2019. The orthodontist has a strict policy that a prepayment is required before braces are given to a patient. $600 of her portion of health insurance premiums not covered by her employer. Due to being permanently handicapped after the accident, she had to install a wheelchair ramp and support bars in her home. Total costs were $4,000. The value of her home increased $2,000, and the improvements have a useful life of 15 years. Assuming she itemizes and her AGI was $40,000, what is her medical expense deduction for 2018? Assuming she does not itemize in 2019 and, as expected, received the reimbursement of $3,000 for the other driver's insurance company, how much AGI will she recognize in 2019 from the reimbursement? $2,600 deduction for 2018; $0 increase in AGI for 2019 $4,600 deduction for 2018; $3,000 increase in AGI for 2019 $1,600 deduction for 2018; $0 increase in AGI for 2019 $7,600 deduction for 2018; $3,000 increase in AGI for 2019 Kathy is a single taxpayer. She had the following unreimbursed medical expenses for 2018: $5,000 of medical expenses related to an auto accident. She expects the other driver's auto insurance to reimburse her $3,000 of the expenses in early 2019. $1,000 prepayment to an orthodontist for braces she will receive in early 2019. The orthodontist has a strict policy that a prepayment is required before braces are given to a patient. $600 of her portion of health insurance premiums not covered by her employer. Due to being permanently handicapped after the accident, she had to install a wheelchair ramp and support bars in her home. Total costs were $4,000. The value of her home increased $2,000, and the improvements have a useful life of 15 years. Assuming she itemizes and her AGI was $40,000, what is her medical expense deduction for 2018? Assuming she does not itemize in 2019 and, as expected, received the reimbursement of $3,000 for the other driver's insurance company, how much AGI will she recognize in 2019 from the reimbursement? $2,600 deduction for 2018; $0 increase in AGI for 2019 $4,600 deduction for 2018; $3,000 increase in AGI for 2019 $1,600 deduction for 2018; $0 increase in AGI for 2019 $7,600 deduction for 2018; $3,000 increase in AGI for 2019