Mike has a chronic illness.He had an adjusted gross income of $42,000.During the year he incurred unreimbursed expenses of $2,500 on prescription drugs,$3,500 on doctor and dentist bills,$2,400 on health insurance premiums,and $250 on medical related transportation costs.Assuming he had enough total itemized deductions to itemize,how much will he be allowed to deduct for these unreimbursed medical expenses?

Question

Quizplus · Accepted Answer

To calculate the deductible amount for unreimbursed medical expenses, we need to subtract 7.5% of the adjusted gross income (AGI) from the total medical expenses. In this case, the calculation is as follows:

Total medical expenses = $2,500 + $3,500 + $2,400 + $250 = $8,650
7.5% of AGI = 0.075 x $42,000 = $3,150

Since $3,150 is less than the total medical expenses, we can subtract it from the total to get the deductible amount:

Deductible medical expenses = $8,650 - $3,150 = $5,500

Therefore, Mike will be allowed to deduct $5,500 for his unreimbursed medical expenses.

Mike Has a Chronic Illness