Caleb's medical expenses before reimbursement for the year include the following: Caleb's AGI for the year is $50,000.He is single and age 58.Caleb also receives a reimbursement for medical expenses of $1,000.Caleb's deductible medical expenses that will be added to the other itemized deduction will be
A)$10,350.
B)$9,100.
C)$14,100.
D)$15,100.

Question

Caleb's medical expenses before reimbursement for the year include the following:  Caleb's AGI for the year is $50,000.He is single and age 58.Caleb also receives a reimbursement for medical expenses of $1,000.Caleb's deductible medical expenses that will be added to the other itemized deduction will be
A)$10,350. 
B)$9,100. 
C)$14,100. 
D)$15,100.

Quizplus · Accepted Answer

Caleb's deductible medical expenses will be computed as follows:
Total medical expenses before reimbursement: $11,000
AGI limitation: 7.5% x $50,000 = $3,750
Amount above the AGI limitation: $11,000 - $3,750 = $7,250
Reimbursement received: $1,000
Deductible medical expenses: $7,250 - $1,000 = $6,250
Therefore, Caleb's deductible medical expenses that will be added to the other itemized deduction will be $6,250, resulting in choice B.

Caleb's Medical Expenses Before Reimbursement for the Year Include the Following