Bill is single with no dependants. For 2020 his net income for tax purposes was $80,000, his Taxable Income was $70,000 and his medical expenses tax credit was $300. How much were his eligible medical expenses?

Question

Quizplus · Accepted Answer

To calculate eligible medical expenses:
Net Income (Line 23600) = $80,000 
Medical Expense (Line 33099) Tax Credit = $300 
Calculate Adjusted Income:
$80,000 – $300 = $79,700
Calculate Medical Expense Amount:
$79,700 x 3% = $2,391
Eligible Medical Expense:
$2,391 - $6 (minimum threshold) = $2,385
Therefore, the eligible medical expenses are $2,385. Option B is the closest choice to this amount, so it is the best choice.

Bill Is Single with No Dependants