Tyrell,who is 65,had adjusted gross income of $35,000 in 2017.During the year,he incurred and paid the following medical expenses: $\begin{array}{lr}
\text {Drugs and medicines prescribed by doctors: }&\$1,570\
\text {Health insurance premiums: }&825\
\text { Doctor and dentist fees:}&1,850\
\text {Hearing aid: }&275\
\end{array}$
Tyrell received $600 in 2017 as a reimbursement for a portion of the doctors' fees.If he were to itemize his deductions,what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?

Question

Tyrell,who is 65,had adjusted gross income of $35,000 in 2017.During the year,he incurred and paid the following medical expenses: $\begin{array}{lr}
\text {Drugs and medicines prescribed by doctors: }&\$1,570\
\text {Health insurance premiums: }&825\
\text { Doctor and dentist fees:}&1,850\
\text {Hearing aid: }&275\
\end{array}$
 Tyrell received $600 in 2017 as a reimbursement for a portion of the doctors' fees.If he 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

The total medical expenses are $1,570 (drugs and medicines) + $825 (health insurance premiums) + $1,850 (doctor and dentist fees) + $275 (hearing aid) = $4,520. After subtracting the $600 reimbursement, the net medical expenses are $3,920. The IRS allows taxpayers to deduct the portion of their medical expenses that exceeds 7.5% of their adjusted gross income (AGI). Tyrell's AGI is $35,000, so 7.5% of that is $2,625. Subtracting this threshold from the net medical expenses ($3,920 - $2,625) gives $1,295, which is the allowable medical expense deduction.

Tyrell,who Is 65,had Adjusted Gross Income of $35,000 in 2017