Question

temized Deductions (LO. 4)

Rebecca and Irving incur the following medical expenses during the current year:

Medical insurance premiums $4,265 Hospital 915 Doctors 1,905 Dentist 550 Veterinarian 130 Chiropractor 210 Cosmetic surgery 1,430 Over-the-counter drugs 160 Prescription drugs 190 Crutches 95

They receive $4,065 in reimbursements from their insurance company of which $345 is for the cosmetic surgery.

Refer to Exhibit 8-2 to answer the following questions. What is their medical expense deduction if their adjusted gross income is the following:

a. Adjusted gross income of $40,000. Their medical expense deduction is $.

b. Adjusted gross income of $49,000. Their medical expense deduction is $.

Answer 1

Part - (a)
Particulars	Amount ($)
Medical insurance premiums	$ 4,265
Hospital	915
Doctors	1,905
Dentist	550
Chiropractor	210
Prescription drugs	190
Crutches	95
Total Allowable medical expenses	$ 8,130
Less: Insurance reimbursements (4065-345)	-3720
Un-reimbursed medical expenses	$ 4,410
Less: AGI limitation ($40,000*10%) For 2019	-4000
Medical expense deduction	$ 410
Part - (b)
Particulars	Amount ($)
Medical insurance premiums	$ 4,265
Hospital	915
Doctors	1,905
Dentist	550
Chiropractor	210
Prescription drugs	190
Crutches	95
Total Allowable medical expenses	$ 8,130
Less: Insurance reimbursements (4065-345)	-3720
Un-reimbursed medical expenses	$ 4,410
Less: AGI limitation ($49,000*10%) For 2019	-4900
Medical expense deduction (No deduction)	$ 0
The AGI limit is higher than Un-reimbursed Medical Expense