Caleb's 2019 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)$10,100.

Question

Caleb's 2019 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)$10,100.

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, which is $3,750 (7.5% of $50,000). Therefore, the deductible amount is $14,100 - $3,750 = $10,350.

Caleb's 2019 Medical Expenses Before Reimbursement for the Year Include