In 2018, David, age 65, had adjusted gross income of $32,000.During the year he paid the following medical expenses: $$\begin{array} { l r }
\text { Prescription medicines } & \$ 200 \
\text { Doctors } & \$ 2,500 \
\text { Medical care insurance } & \$ 1,400 \
\text { Over-the-counter hair growth tonic } & \$ 250
\end{array}$$ What amount can David deduct as medical expenses (after the adjusted gross income limitation)in calculating his itemized deductions for 2018?

Question

In 2018, David, age 65, had adjusted gross income of $32,000.During the year he paid the following medical expenses: $$\begin{array} { l r } 
\text { Prescription medicines } & \$ 200 \
\text { Doctors } & \$ 2,500 \
\text { Medical care insurance } & \$ 1,400 \
\text { Over-the-counter hair growth tonic } & \$ 250
\end{array}$$ What amount can David deduct as medical expenses (after the adjusted gross income limitation)in calculating his itemized deductions for 2018?

Quizplus · Accepted Answer

Medical expenses are deductible only to the extent that exceeding the so-called adjusted gross income limitations or 7.5% of AGI in 2018. In this case, David's medical expenses over the adjusted gross income limit of $2,400 (7.5% of AGI ($32,000)),which is $4,100. Therefore, the amount that David can deduct as medical expenses is $1,700 ($2,400 − $700).

In 2018, David, Age 65, Had Adjusted Gross Income of $32,000.During