Jon, age 45, had adjusted gross income of $26,000 in 2018.During the year, he incurred and paid the following medical expenses: $\begin{array}{llcc}
\text {Drugs and medicines prescribed by doctors } &\$300 \
\text { Health insurance premiums } &\$750\
\text {Doctors' fees } &\$2,250\
\text { Eyeglasses} &\$75\

\end{array}$
Jon received $900 in 2018 as a reimbursement for a portion of the doctors' fees.If Jon were to itemize his deductions, what would be his allowable medical expense deduction after the adjusted gross income limitation is taken into account?

Question

Jon, age 45, had adjusted gross income of $26,000 in 2018.During the year, he incurred and paid the following medical expenses: $\begin{array}{llcc}
  \text {Drugs and medicines prescribed by doctors  } &\$300  \
 \text { Health insurance premiums  } &\$750\
 \text {Doctors' fees  } &\$2,250\
 \text {  Eyeglasses} &\$75\

\end{array}$
 Jon received $900 in 2018 as a reimbursement for a portion of the doctors' fees.If Jon 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

To calculate the allowable medical expense deduction, first sum up all the medical expenses: $300 + $750 + $2,250 + $75 = $3,375. Subtract the $900 reimbursement: $3,375 - $900 = $2,475. The AGI limitation is 7.5% of $26,000, which is $1,950. Subtract this from $2,475 to get the deductible amount: $2,475 - $1,950 = $525.

Jon, Age 45, Had Adjusted Gross Income of $26,000 in 2018.During