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While on her way to work in 2019, Alejandra was rear-ended by a hit-and-run driver. Thankfully, she was not injured in the accident. The damage

While on her way to work in 2019, Alejandra was rear-ended by a hit-and-run driver. Thankfully, she was not injured in the accident. The damage to her Honda CRV was covered by her insurance company, General Casualty, except for the $1,000 deductible she was required to pay for the repairs. In early 2021, General Casualty located the driver who caused the accident and was reimbursed by his insurer. Consequently, Alejandra received a $1,000 refund check from General Casualty in July 2021 to reimburse her for her $1,000 deductible.

What are the tax consequences of the information above for 2021 tax return?

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