A person has $4,000 in medical expenses and an adjusted gross income of $32,000.If taxpayers are allowed to deduct the amount of medical expenses that exceed 7.5 percent of adjusted gross income,what would be the amount of the deduction in this situation?

Question

Quizplus · Accepted Answer

First, we need to calculate 7.5% of the adjusted gross income: 
7.5% of $32,000 = 0.075 x $32,000 = $2,400

Since the medical expenses amount to $4,000 and are greater than $2,400, we can deduct the amount that exceeds this threshold: 
$4,000 - $2,400 = $1,600

Therefore, the deduction in this situation would be $1,600, which is option B.

A Person Has $4,000 in Medical Expenses and an Adjusted