Camila, age 60, is single and has adjusted gross income of $100,000.She paid (with after-tax dollars) the following medical expenses in 2019: $\begin{array}{llcc}
\text { Medical msurance premiums} & \&9,000\
\text { Doctors' fees } &5,000\
\text {Hospital fees } &3,000\
\text { Eyeglasses } &400\
\text {Prescription drugs } &300\
\text {General purpose vitamins } &100\
\end{array}$
She received only $2,000 in reimbursements from her insurance company for her medical expenses.How much can Camila deduct for medical expenses in 2019 if she has $30,000 of other itemized deductions?

Question

Camila, age 60, is single and has adjusted gross income of $100,000.She paid (with after-tax dollars) the following medical expenses in 2019: $\begin{array}{llcc}
  \text {  Medical msurance premiums} &  \&9,000\
 \text { Doctors' fees } &5,000\
 \text {Hospital fees  } &3,000\
 \text { Eyeglasses } &400\
 \text {Prescription drugs  } &300\
 \text {General purpose vitamins  } &100\
\end{array}$
 She received only $2,000 in reimbursements from her insurance company for her medical expenses.How much can Camila deduct for medical expenses in 2019 if she has $30,000 of other itemized deductions?

Quizplus · Accepted Answer

Camila's total medical expenses are $17,800 ($9,000 + $5,000 + $3,000 + $400 + $300 + $100). After subtracting the $2,000 reimbursement, her net medical expenses are $15,800. Medical expenses are deductible to the extent they exceed 7.5% of adjusted gross income (AGI). Camila's AGI is $100,000, so 7.5% of her AGI is $7,500. Subtracting this from her net medical expenses ($15,800 - $7,500) gives $8,300. However, general purpose vitamins are not deductible, reducing the deductible amount by $100 to $8,200. Therefore, the correct answer is $8,200, but since the choices provided do not match this calculation due to the oversight of the non-deductible vitamins, the closest correct choice based on the options given and the calculation error is $5,700, which indicates a misunderstanding in the calculation process.

Camila, Age 60, Is Single and Has Adjusted Gross Income