T's A.G.I.for the current year is $20,000.Her medical expenses during the year were: $$\begin{array} { l l }
\text { Aspirin, cold medicine, etc. } & \$ 125 \
\text { Prescription drugs } & 260 \
\text { Medical insurance premiums } & 1,000 \
\text { Doctors, dentists, etc. } & 3,200
\end{array}$$ Assuming she is not reimbursed for any medical expenditures during the current year, T's medical expense deduction is

Question

T's A.G.I.for the current year is $20,000.Her medical expenses during the year were: $$\begin{array} { l l } 
\text { Aspirin, cold medicine, etc. } & \$ 125 \
\text { Prescription drugs } & 260 \
\text { Medical insurance premiums } & 1,000 \
\text { Doctors, dentists, etc. } & 3,200
\end{array}$$ Assuming she is not reimbursed for any medical expenditures during the current year, T's medical expense deduction is

Quizplus · Accepted Answer

Medical expenses that are deductible include prescription drugs, medical insurance premiums, and payments to doctors, dentists, etc., totaling $260 + $1,000 + $3,200 = $4,460. However, to calculate the deductible amount, one must subtract 7.5% of the AGI ($20,000 * 7.5% = $1,500) from the total eligible medical expenses. Thus, $4,460 - $1,500 = $2,960 is deductible. Non-prescription drugs (like aspirin, cold medicine) are not deductible.

T's AGIFor the Current Year Is $20,000 Assuming She Is Not Reimbursed for Any Medical Expenditures During