Seamus is employed as a corporate attorney. In 2019 he had AGI of $57,000 and paid...

Seamus is employed as a corporate attorney. In 2019 he had AGI of $57,000 and paid the following medical expenses.

Medical insurance premiums (withheld on a pretax basis) $4,700
Doctor and dentist bills for Dave and Elaine (Seamus’ parents) $6,800
Doctor and dentist bills for Seamus. $5,200
Prescription medicines for Seamus $400
Weight loss treatment related to obesity $600
Nonprescription insulin for Seamus $850
Low Dose Aspirin prescribed by Seamus’ doctor bought over the counter $225

Dave and Elaine would qualify as Seamus’ dependents except they file a join return. Seamus’ medical insurance policy does not cover them. Seamus does not expect to receive any reimbursements for the medical expenses identified in this list. Assuming Seamus has $8,000 of other eligible itemized deductions, what is Seamus’ tax benefit related to his maximum allowable medical expense deduction for 2019?

Expert Solution

Allowable Medical Expenses for 2019 -

Medical insurance premiums $4,700 - is an allowed medical expense

Doctor and dentist bills for Dave and Elaine (Seamus parents) $6,800 - Seamus parents are filing their own tax return so Seamus is not allowed to take the deduction.

Doctor and dentist bills for Seamus. $5,200 - Allowed as a medical expense

Prescription medicines for Seamus $400 - allowed as a medical expense

Weight loss treatment related to obesity $600 - not allowed as a medical expense, if the expense is related to any illness then it is allowed.

Nonprescription insulin for Seamus $850 - allowed as a medical expense - insulin is allowed even with nonprescription.

Low Dose Aspirin prescribed by Seamus’ doctor bought over the counter $225 - not allowed, in general, whatever taken through OTC is not allowable even if a doctor recommends purchasing them.

1. Medical and dental expense $850+400+5200+4700 $11,150

2. Enter amount from Form 1040 - AGI $57,000

3. Multiply line 2 by 7.5% - 57,000*7.5% 4,275

4. Subtract line 3 from line 1 $6,875 - allowable medical expense.

ekkarill92 answered 2 years ago

5. Seamus is employed as a corporate attorney. In 2019 he had AGI of $57,000 and...

5. Seamus is employed as a corporate attorney. In 2019 he had AGI of $57,000 and paid the following medical expenses. Medical insurance premiums (withheld on a pretax basis) $4,700 Doctor and dentist bills for Dave and Elaine (Seamus’ parents) $6,800 Doctor and dentist bills for Seamus $5,200 Prescription medicines for Seamus $ 400 Weight loss treatment related to obesity $ 600 Nonprescription insulin for Seamus $ 850 Low Dose Aspirin prescribed by Seamus’ doctor bought over the counter $...

Reggie, who is 55, had AGI of $36,000 in 2019. During the year, he paid the...

Reggie, who is 55, had AGI of $36,000 in 2019. During the year, he paid the following medical expenses: Drugs (prescribed by physicians) $ 580 Marijuana (prescribed by physicians) 1,480 Health insurance premiums–after taxes 1,250 Doctors’ fees 1,330 Eyeglasses 455 Over-the-counter drugs 280 Required: Reggie received $580 in 2019 for a portion of the doctors’ fees from his insurance. What is Reggie’s medical expense deduction?

Reggie, who is 55, had AGI of $23,200 in 2018. During the year, he paid the...

Reggie, who is 55, had AGI of $23,200 in 2018. During the year, he paid the following medical expenses. Drug (prescribed by physicians) $245 Marijuana (prescribed by physician) $1.445 Health Insurance premiums-after taxes $1,090 Doctors fee $1,295 Eyeglasses $420 Over-the counter drugs $245 Reggie received $545 in 2018 for a portion of the doctors’ fees from his insurance. What is Reggie’s medical expense deduction? Medical deduction expense : _________________________

Debra Simon is a single taxpayer. She is employed as a corporate attorney and lives at...

Debra Simon is a single taxpayer. She is employed as a corporate attorney and lives at 1400 Sand Dollar Circle, Sandville, FL 33868. Her Social Security number is 412-34-5670. For tax year 2017, Debra had the following income information: Wages $155,000 Social Security Withholding $7,886 Medicare withholding $2,248 Federal income tax withholding $34,550 State income tax withholding $0 New Bank 1099-INT $5,500 Hope Bank 1099-INT $3,875 Debra had the following stock transactions during 2017. A 1099-B was received for the...

Marilyn, age 38, is employed as an architect. For calendar year 2018, she had AGI of...

Marilyn, age 38, is employed as an architect. For calendar year 2018, she had AGI of $204,000 and paid the following medical expenses: Medical insurance premiums $ 7,800 Doctor bills for Peter and Esther (Marilyn’s parents) 7,300 Doctor and dentist bills for Marilyn 11,100 Prescription medicines for Marilyn 750 Nonprescription insulin for Marilyn 950 Peter and Esther would qualify as Marilyn’s dependents except that they file a joint return. Marilyn’s medical insurance policy...

Facts: Paul Willard is a self-employed attorney. Because of erroneous advice that he gave, one of...

Facts: Paul Willard is a self-employed attorney. Because of erroneous advice that he gave, one of Paul’s clients incurred unnecessary costs of $20,000. The client threatened to sue Paul for malpractice, and Paul reimbursed this sum to his client. Although his malpractice insurance would have covered the payment, he chose not to file for reimbursement. Because he had two recent malpractice claims, Paul is convinced that another claim could cause him to be either uninsurable or insurable only at unaffordable...

Tax 2018. Amos is a self-employed tax attorney. He and Monica, his employee, attend a conference...

Tax 2018. Amos is a self-employed tax attorney. He and Monica, his employee, attend a conference in Dallas sponsored by the American Institute of CPAs. The following expenses are incurred during the trip: Amos Monica Conference registration $ 900 $900 Airfare 1,200 700 Taxi fares 100 –0– Lodging in Dallas 750 300 Amos pays for all of these expenses. Calculate the effect of these expenses on Amos’s AGI. Would your answer to part (a) change if the American Bar Association had...

In 2019, David, age 65, had adjusted gross income of $32,000. During the year he paid...

In 2019, David, age 65, had adjusted gross income of $32,000. During the year he paid the following medical expenses: Prescription medicines $200 Doctors $2,500 Medical care insurance $1,400 Over-the-counter hair growth tonic $250 What amount can David deduct as medical expenses (after the adjusted gross income limitation) in calculating his itemized deductions for 2019? a.$1,700 b.$4,100 c.$0 d.$900 e.None of these choices are correct.

31. Alfredo, a self-employed patent attorney, flew from his home in Chicago to Miami, had lunch...

31. Alfredo, a self-employed patent attorney, flew from his home in Chicago to Miami, had lunch alone at the Chicago airport, conducted business in the afternoon, and returned to Chicago in the evening. His expenses were as follows: Airfare $800 Airport parking (Chicago) 50 Lunch 40 Taxis (Miami) 42 What is Alfredo’s deductible expense for the trip? 32. Anne sells a rental house for $300,000 (adjusted basis of $255,000). During her ownership, $60,000 of losses have been suspended under the...

Ramon had AGI of $180,000 in 2018. He is considering making a charitable contribution this year...

Ramon had AGI of $180,000 in 2018. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. a. A cash gift of $95,000. In the current year, Ramon may deduct $ 95,000 since his charitable contribution is limited to $ _________ c. A gift of a...

Question