Amy owns her own individual Medical Expense Policy. Which of the following is true about the taxation of her premiums and medical expenses?

Amy owns her own individual Medical Expense Policy. Which of the following is true about the taxation of her premiums and medical expenses?



A. Only unreimbursed medical expenses, excluding premiums, are deductible


B. If she itemizes deductions and her medical expenses, including premiums, exceed 10% of her adjusted gross income, the portion exceeding that amount may be deducted


C. Benefits she receives from her policy are taxable to the extent they exceed her premiums


D. In all cases, the premiums for Medical Expense policies are deductible, but expenses are not



Answer: B.

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