Sarah pays $250 each month in premiums for her personal dental insurance policy and earns $300,000 a year as CEO of a small company. If she incurs $500 in dental expenses and the insurer reimburses her for these costs, Sarah:

Sarah pays $250 each month in premiums for her personal dental insurance policy and earns $300,000 a year as CEO of a small company. If she incurs $500 in dental expenses and the insurer reimburses her for these costs, Sarah:


A) cannot take an income tax deduction for either the premiums paid or the $500 in dental expenses.

B) can take an income tax deduction for the amount of premiums paid for the dental insurance.

C) can take an income tax deduction for the amount of premiums paid for dental insurance and for the $500 in expenses.

D) can take an income tax deduction for the $500 in dental expenses.



Answer: A) cannot take an income tax deduction for either the premiums paid or the $500 in dental expenses.

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