Fred and Lucy are married,ages 33 and 32,and together have AGI of $120,000 in 2013.They have four dependents and file a joint return.They pay $5,000 for a high deductible health insurance policy and contribute $2,600 to a qualified Health Savings Account.During the year,they paid the following amounts for medical care: $9,200 in doctor and dentist bills and hospital expenses,and $3,000 for prescribed medicine and drugs.In October 2013,they received an insurance reimbursement of $4,400 for the hospitalization.They expect to receive an additional reimbursement of $1,000 in January 2014.Determine the maximum deduction allowable for medical expenses in 2013.
A) $800.
B) $3,400.
C) $9,200.
D) $12,800.
E) None of the above.
Correct Answer:
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