Itemized Deductions (LO. 4) Rebecca and Irving incur the following medical expen
ID: 2331485 • Letter: I
Question
Itemized Deductions (LO. 4) Rebecca and Irving incur the following medical expenses during the current year: Medical insurance premiums Hospital Doctors Dentist Veterinarian Chiropractor Cosmetic surgery Over-the-counter drugs Prescription drugs Crutches $4,500 950 1,925 575 170 220 1,450 165 195 105 They receive $4,000 in reimbursements from their insurance company of which $300 is for the cosmetic surgery Refer to Exhibit 8-2 to answer the following questions. What is their medical expense deduction if their adjusted gross income is the following: a. Adjusted gross income of $59,500. Their medical expense deduction is b. Adjusted gross income of $62,000. Their medical expense deduction is $Explanation / Answer
Part - (a) Particulars Amount ($) Medical insurance premiums 4,500 Hospital 950 Doctors 1,925 Dentist 575 Chiropractor 220 Prescription drugs 195 Crutches 105 Total Allowable medical expenses 8,470 Less: Insurance reimbursements (4,000-300) (3,700) Unreimbursed medical expenses 4,770 Less: AGI limitation ($59,500 x 7.5%) (4,463) Medical expense deduction 308 Part - (b) Particulars Amount ($) Medical insurance premiums 4,500 Hospital 950 Doctors 1,925 Dentist 575 Chiropractor 220 Prescription drugs 195 Crutches 105 Total Allowable medical expenses 8,470 Less: Insurance reimbursements (4,000-300) (3,700) Unreimbursed medical expenses 4,770 Less: AGI limitation ($62,000 x 7.5%) (4,650) Medical expense deduction 120
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.