Brad,who would otherwise qualify as Faye's dependent,had gross income of $9,000 during the year.Faye,who had AGI of $120,000,paid the following medical expenses in 2015: Cataract operation for Brad $ 5,400 Brad's prescribed contact lenses 1,800 Faye's doctor and dentist bills 12,600 Prescribed drugs for Faye 2,550 Total $22,350 Assuming Faye is age 45,she has a medical expense deduction of:
A)$3,150
B)$4,950
C)$10,350
D)$13,350
E)None of the above

Question

Brad,who would otherwise qualify as Faye's dependent,had gross income of $9,000 during the year.Faye,who had AGI of $120,000,paid the following medical expenses in 2015: Cataract operation for Brad $ 5,400 Brad's prescribed contact lenses 1,800 Faye's doctor and dentist bills 12,600 Prescribed drugs for Faye 2,550 Total $22,350 ​ Assuming Faye is age 45,she has a medical expense deduction of:
A)$3,150
B)$4,950
C)$10,350
D)$13,350
E)None of the above

Quizplus · Accepted Answer

In order to calculate Faye's medical expense deduction, we need to first determine the amount of total medical expenses that exceed 10% of Faye's AGI.

10% of Faye's AGI is $12,000 (120,000 x 0.1).

The total medical expenses paid by Faye are $22,350.

However, we need to subtract the medical expenses paid for Brad, since he had gross income of $9,000 and would not qualify as Faye's dependent.

So, the adjusted medical expenses are $22,350 - $5,400 - $1,800 = $15,150.

Since this amount is greater than 10% of Faye's AGI, her medical expense deduction is $15,150 - $12,000 = $3,150.

Therefore, the correct answer is C) $10,350 (total medical expenses paid minus medical expense deduction).

Brad,who Would Otherwise Qualify as Faye's Dependent,had Gross Income of $9,000