During 2017, Maeson is 50 years old and single : (base on cash basis calendar ye

Question

During 2017, Maeson is 50 years old and single : (base on cash basis calendar year)

Medical insurance premiums paid                                         $3000

Hospital and doctor bills                                                         10500

Non-prescription vitamin supplements                                 1000

In November 2017, Maeson filed a claim with his employer’s insurance company for reimbursement of $6000 of the medical bills paid in 2017. At the time Maeson filed his return he had not received the insurance refund. If Maeson has AGI of $50000 for 2017 and itemizes his deductions, what is the amount of deductible medcal expenses after applying the AGI limitation:

a. 13500

b. 9750

c. 8500

d. some other amount__________________

Explanation / Answer

answer is option c 8500

total eligible medical expense = 3000+10500 = 13500

amount of deductible medical expenses is amount of total eligible medical expenses that exceeds 10% of AGI

10% of AGI = 10%*50000 = 5000

amount of medical expenses that exceeds 5000 = 13500-5000 = 8500 and thus 8500 is amount of deductible medical expenses.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.