Jon, age 45, had adjusted gross income of $26,000 in 2019. During the year, he incurred and paid the following medical expenses: $$\begin{array} { l r }
\text { Drugs and medicines prescribed by doctors } & \$ 300 \
\text { Health insurance premiums } & \$ 750 \
\text { Doctors' fees } & \$ 2,650 \
\text { Eyegl asses } & \$ 75
\end{array}$$ Jon received $900 in 2019 as a reimbursement for a portion of the doctors' fees. If Jon were to itemize his deductions, what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?

Question

Jon, age 45, had adjusted gross income of $26,000 in 2019. During the year, he incurred and paid the following medical expenses: $$\begin{array} { l r } 
\text { Drugs and medicines prescribed by doctors } & \$ 300 \
\text { Health insurance premiums } & \$ 750 \
\text { Doctors' fees } & \$ 2,650 \
\text { Eyegl asses } & \$ 75
\end{array}$$ Jon received $900 in 2019 as a reimbursement for a portion of the doctors' fees. If Jon were to itemize his deductions, what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?

Quizplus · Accepted Answer

Jon's total medical expenses are $3,775. The reimbursement of $900 reduces this to $2,875. The IRS allows medical expense deductions exceeding 10% of AGI. 10% of $26,000 is $2,600. Thus, Jon can deduct $2,875 - $2,600 = $275.

Jon, Age 45, Had Adjusted Gross Income of $26,000 in 2019