2155 and 1455 are not the right answer so please show me where did i go wrong. T
ID: 2423195 • Letter: 2
Question
2155 and 1455 are not the right answer so please show me where did i go wrong. Thanks.
Itemized Deductions (LO. 4) Rebecca and Irving incur the following medical expenses during the current year: They receive $4,000 in reimbursements from their insurance company of which $300 is for the cosmetic surgery. If an amount is zero, enter "0". What is their medical expense deduction if their adjusted gross income is the following: Adjusted gross income of $44,000. Their medical expense deduction is $ Adjusted gross income of $51,000. Their medical expense deduction is $ Individuals are allowed a deduction for their unreimbursed medical costs as well as those of their spouse and any dependents.Explanation / Answer
Rebecca and Irving’s allowable medical costs before reimbursement are $7,370. The cosmetic surgery, veterinarian fees, and the over-the-counter drugs are not allowable medical expenses. Their unreimbursed medical costs are $3,670 [$7,370 - $3,700 ($4,000 - $300)]. The $4,000 reimbursement is reduced by the $300 reimbursement for the cosmetic surgery. The $3,670 of medical expenses is subject to the 7 1/2% AGI limitation.
Their allowable deduction is $370:
Medical insurance premiums $ 4,100
Hospital 950
Doctors 1,225
Dentist 575
Chiropractor 220
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