Caleb's medical expenses before reimbursement for the year include the following: $$\begin{array} { | l | r |}
\hline \text { Medical premiums } & \$ 11,000 \
\hline \text { Doctors, hospitals } & 3,500 \
\hline \text { Prescriptions } & 600 \
\hline
\end{array}$$ 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: $$\begin{array} { | l | r |} 
\hline \text { Medical premiums } & \$ 11,000 \
\hline \text { Doctors, hospitals } & 3,500 \
\hline \text { Prescriptions } & 600 \
\hline
\end{array}$$ 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 total medical expenses are $15,100 ($11,000 + $3,500 + $600). After the $1,000 reimbursement, the expenses are $14,100. The deductible amount is the excess over 7.5% of AGI: $50,000 x 7.5% = $3,750. Thus, $14,100 - $3,750 = $10,350. However, the correct choice is $9,100, which suggests a miscalculation or misinterpretation in the options provided.

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