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Your friend Scotty informs you that he received a tax-free reimbursement in 2016 of some medical expenses he paid in 2015. Which of the following

Your friend Scotty informs you that he received a "tax-free" reimbursement in 2016 of some medical expenses he paid in 2015. Which of the following statements best explains why Scotty is not required to report the reimbursement in gross income?

a.Scotty itemized deductions in 2016.

b.Scotty itemized deductions in 2015.

c.Scotty did not itemize deductions in 2015.

d.Scotty did not itemize deductions in 2016.

e.Scotty itemized deductions in 2016 but not in 2015.

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