Question

In: Accounting

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?

Solutions

Expert Solution

Particulars Amount in $
Drugs (prescribed by Physicians )               580
Marijuanan (prescribed by Physicians )            1,480
Health insurance premium after taxes            1,250
Doctor Fees            1,330
Eyeglasses               455
Less: Portion of doctor fee received from insurance              -580
Total            4,515
The Threshold limit 10% of AGI
Reggie's Medical Expenses deduction $ 915 (4,515 - (36,000 x 10%) )
Note:
All expenses are qualified medical expenses except for the over-the-counter drugs.

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