Question

Mr. & Mrs. Gere. who are filing a joint return, have adjusted gross income of $50,000. During the tax year, they paid the following medical expenses for themselves and for Mr.s Gere's mother, Mrs. Watson. The Gere's claim Mrs. Wastson as a dependent.

Insulin for Mr. Gere $1,000

Health Insurance premiums for Mrs. Gere $3,100

The hospital bill for Mrs. Watson $5,200

Doctor bill for Mrs. Gere $4,000

Mr. & Mrs. Gere received no reimbursement for the above expenditures. Calculate the amount of their deductible itemized medical expenses.

Answer 1

	Note:
	Deductible Medical Expense
	Payment of fees to doctors
	Payment for in patient hospital care or residential nursing home care
	Payment of Insulin and payment for drugs as per per prescription
	Payment for transportation primarily essential for medical care
	Payment of Insurance Premium you paid for policies that cover medical care
	7.5% of Adjusted gross income in 2017 and 2018 allowed as medical expenses.
	10% of Adjusted gross income in2019 allowed as medical expenses.
	Year	2018
	Adjusted Gross Income=	$ 50,000.00
	7.5% of Adjusted Gross Income=($50000*7.5%)	$   3,750.00
	Medical Expenses Allowed as deduction
	Isulin for Mr Gere	$   1,000.00
	Health Insurance Premium for Mrs.Gere	$   3,100.00
	Hospital bill for Mrs.Watson	$   5,200.00
	Doctor bill for Mrs Gere	$   4,000.00
	Total	$ 13,300.00
	Deduction=($13300-$3750)	$   9,550.00
	Deductible itemized medical expenses=	$   9,550.00
	Year	2019
	Adjusted Gross Income=	$ 50,000.00
	7.5% of Adjusted Gross Income=($50000*10%)	$   5,000.00
	Medical Expenses Allowed as deduction
	Isulin for Mr Gere	$   1,000.00
	Health Insurance Premium for Mrs.Gere	$   3,100.00
	Hospital bill for Mrs.Watson	$   5,200.00
	Doctor bill for Mrs Gere	$   4,000.00
	Total	$ 13,300.00
	Deduction=($13300-$3750)	$   8,300.00
	Deductible itemized medical expenses=	$   8,300.00