During 2014 Shakira paid the following expenses: What is the total amount of medical expenses (before application of the adjusted gross income limitation)that would enter into the calculation of itemized deductions on Shakira's 2014 income tax return?
A)$ 525.
B)$1,325.
C)$1,500.
D)$1,575.

Question

During 2014 Shakira paid the following expenses:  What is the total amount of medical expenses (before application of the adjusted gross income limitation)that would enter into the calculation of itemized deductions on Shakira's 2014 income tax return?
A)$ 525. 
B)$1,325. 
C)$1,500. 
D)$1,575.

Quizplus · Accepted Answer

The medical expenses that can be included in the calculation of itemized deductions are those that exceed 10% of the adjusted gross income (AGI). To calculate the total amount of medical expenses that can be included, we need to subtract 10% of the AGI from the total medical expenses. In this case, we don't know Shakira's AGI, so we can't calculate the exact amount. However, we can see that the total medical expenses are $1,500, which means that if Shakira's AGI is less than $15,000, all of these expenses can be included in the calculation of itemized deductions. If her AGI is higher than $15,000, only the amount that exceeds 10% of her AGI can be included (for example, if her AGI is $20,000, only medical expenses that exceed $2,000 can be included). Therefore, the best choice is C, $1,500, as this is the total amount of medical expenses that Shakira paid in 2014.

During 2014 Shakira Paid the Following Expenses: What Is