Richard, age 50, is employed as an actuary.For calendar year 2017, he had AGI of $130,000 and paid the following medical expenses: $$\begin{array} { l r }
\text { Medical insurance premiums } & \$ 5,300 \
\text { Doctor and dentist bills for Derrick and Jane (Richard's parents) } & 7,900 \
\text { Doctor and dentist bills for Richard } & 5,100 \
\text { Prescribed medicines for Richard } & 830 \
\text { Nonprescribed insulin for Richard } & 960
\end{array}$$ Derrick and Jane would qualify as Richard's dependents except that they file a joint return.Richard's medical insurance policy does not cover them.Richard filed a claim for $4,800 of his own expenses with his insurance company in November 2017 and received the reimbursement in January 2018.What is Richard's maximum allowable medical expense deduction for 2017?

Question

Richard, age 50, is employed as an actuary.For calendar year 2017, he had AGI of $130,000 and paid the following medical expenses: $$\begin{array} { l r } 
\text { Medical insurance premiums } & \$ 5,300 \
\text { Doctor and dentist bills for Derrick and Jane (Richard's parents) } & 7,900 \
\text { Doctor and dentist bills for Richard } & 5,100 \
\text { Prescribed medicines for Richard } & 830 \
\text { Nonprescribed insulin for Richard } & 960
\end{array}$$ Derrick and Jane would qualify as Richard's dependents except that they file a joint return.Richard's medical insurance policy does not cover them.Richard filed a claim for $4,800 of his own expenses with his insurance company in November 2017 and received the reimbursement in January 2018.What is Richard's maximum allowable medical expense deduction for 2017?

Quizplus · Accepted Answer

Richard can deduct medical expenses that exceed 10% of his AGI. His total medical expenses are $20,090. The deductible amount is $20,090 - $13,000 (10% of AGI) = $7,090. The reimbursement received in 2018 does not affect the 2017 deduction.

Richard, Age 50, Is Employed as an Actuary Derrick and Jane Would Qualify as Richard's Dependents Except That