Mitzi's medical expenses include the following: Mitzi's AGI for the year is $33,000.She is single and age 49.None of the medical costs are reimbursed by insurance.After considering the AGI floor,Mitzi's medical expense deduction is

Question

Mitzi's medical expenses include the following:  Mitzi's AGI for the year is $33,000.She is single and age 49.None of the medical costs are reimbursed by insurance.After considering the AGI floor,Mitzi's medical expense deduction is

Quizplus · Accepted Answer

To calculate the medical expense deduction, first add up all the medical expenses listed, which equals $24,000. However, you can only deduct medical expenses that exceed 7.5% of your AGI. Therefore, 7.5% of Mitzi's AGI is $2,475. Since her total medical expenses exceed $2,475, she can deduct the difference, which is $24,000 - $2,475 = $21,525. However, there is a limitation on the amount of medical expenses you can deduct in a given year based on your income level. Since Mitzi's AGI is $33,000, the limitation on her deduction is 10% of her AGI, which is $3,300. Therefore, her medical expense deduction is limited to $21,525 - $3,300 = $18,225. However, she started with $24,000, so some expenses will need to be eliminated to reach the maximum deduction. After reviewing the expenses, the total of $13,850 is above the AGI floor, but below the limitation ceiling, so it is the correct deduction amount.

Mitzi's Medical Expenses Include the Following: Mitzi's AGI for the Year