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In: Accounting

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 : _________________________

Solutions

Expert Solution

Answer:

Medical expense deduction = $2810 - Allowable medical expense
<545> - Insurance reimbursement
2265
<1740> 7.5% of AGI
$0 - Amount of deduction

Even though prescribed by a physician the cost of the marijuana is not deductible because it cannot be legally procured per federal statute. Over the counter drugs are also not a permitted qualifying medical expense.

ekkarill92 answered 2 years ago
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