Respuesta :
Answer: a. $3925; b. $1430
Explanation:
Your question isn't complete but here's an example relating to the question you asked.
Simpson is a single individual under 65 who is employed full-time by Duff Corporation. This year Simpson reports AGI of $54,200 and has incurred the following medical expenses:
Dentist charges $1,410
Physician's charges $1,890
Optical charges $525
Cost of eyeglasses $465
Hospital charges $2,300
Prescription drugs $385
Over-the-counter drugs $695
Medical insurance premiums (not through an exchange $1005
a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
To do this, we need to calculate the qualified medical expenses and this will be the addition of all the expenses given in the question except the over the counter drugs. This will be:
Dentist charges $1,410
Physician's charges $1,890
Optical charges $525
Cost of eyeglasses $465
Hospital charges $2,300
Prescription drugs $385
Medical insurance premiums $1005
Total = $7990
Simpson's medical expense deduction will now be:
= $7990 - (7.5% × $54,200)
= $7990 - (0.075 × $54,200)
= $7990 - $4065.
= $3925.
b. Suppose that Simpson was reimbursed for $555 of the physician's charges and $1,940 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson’s itemized deductions after any applicable limitations.
To solve this, we calculate the medical expenses which has already been calculated as $7990 in (a), we then deduct both the reimbursement of ($555 + $1940) = $2495 and the floor limit of $4065. This will be:
= $7999 - $2495 - $4065
= $1430
