Mr.and Mrs.Davenport have three children ages 3,6,and 13.Their financial matters for 2008 are as follows: How much would the Davenports' medical expenses contribute to their total itemized deductions?

Question

Mr.and Mrs.Davenport have three children ages 3,6,and 13.Their financial matters for 2008 are as follows:  How much would the Davenports' medical expenses contribute to their total itemized deductions?

Quizplus · Accepted Answer

The total medical expenses listed on the form are $2,375. However, only medical expenses in excess of 7.5% of their adjusted gross income can be claimed as a deduction. Their adjusted gross income is listed as $50,000, so 7.5% of that is $3,750. Therefore, only medical expenses in excess of $3,750 can be claimed. $2,375 - $3,750 = -$1,375, which means they cannot claim any medical expenses as a deduction. However, the form also lists an HSA contribution of $375. This can be claimed as a deduction, so their total medical expenses contribution to their itemized deductions is $375.

MrAnd MrsDavenport Have Three Children Ages 3,6,and 13