What is the tax consequence and correct deduction for this scenario. Where on the tax draft...

What is the tax consequence and correct deduction for this scenario. Where on the tax draft forms does this deduction go?

The Schnappaufs incur the following medical expenses (before considering the $700 reimbursement they receive from their health insurance policy):

medical premiums 3800

doctors 1200

chiropractor 650

dentist 1900

vet fees (family dog sandy) 350

prescription drugs 340 over the counter drugs (aspirin, cough syrup) 175.

In addition, Bill purchases an Exsoaligner machine for $700. The machine was recommended by the chiropractor to help strengthen Bill's back muscles.

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Expert Solution

Medical expenses that are deductible by for yourself,spouse and your dependents are that exceeding 7.5% of the adjusted gross income.

Medical expenses deductible for the year 2018 are as below,

Medical premiums = $3800
Doctors = $1200
Chiropractor = $650
Dentist = $1900
Prescription Drugs = $340
Exsoaligner machine = $700

Total Deductions available = $8590

Reimbursement received from health insurance policy = $700

Net deductions available = $7890

Expenses that are not deductible are,

Veterinary fees for dog is not deductible as it is a family dog. It is available if it is used for the business purpose.
Over the counter drugs are not allowed as deduction,except for insulin.

Schedule A of Form1040:-

Total deductions amount is shown in Line 1 of Schedule A and adjusted gross income in line 2

Enter 7.5% of adjusted gross income in line 3

Difference between Line 1 and Line 3 is entered in Line 4.

ekkarill92 answered 1 year ago

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