Brad, who would otherwise qualify as Faye's dependent, had gross income of $9,000 during the year. Faye, who had AGI of $120,000, paid the following medical expenses this year: $\begin{array}{lr}
\text { Cataract operation for Brad } & \$ 5,400 \
\text { Brad's prescribed contact lenses } & 1,800 \
\text { Faye's doctor and dentist bills } & 12,600 \
\text { Frescribed drugs for Faye } & 2,550 \
\text { Total }&\$22,350
\end{array}$ Faye has a medical expense deduction of:
A) $3,150
B) $4,950
C) $10,350
D) $13,350
E) None of these

Question

Quizplus · Accepted Answer

Faye can only deduct medical expenses exceeding 7.5% of her AGI. Her AGI is $120,000, so 7.5% is $9,000. Total medical expenses are $22,350. Deductible expenses are $22,350 - $9,000 = $13,350. However, Brad's expenses ($5,400 + $1,800 = $7,200) are not deductible because he is not a qualifying dependent due to his income. Thus, Faye's deductible expenses are $13,350 - $7,200 = $6,150. The correct deduction is $10,350, which is the sum of Faye's own expenses ($12,600 + $2,550 = $15,150) minus the $9,000 threshold.

Brad, Who Would Otherwise Qualify as Faye's Dependent, Had Gross