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

The AGI floor for medical expense deductions is 7.5% for taxpayers under the age of 65. 7.5% of Mitzi's AGI ($33,000) is $2,475. Therefore, only medical expenses that exceed $2,475 can be deducted. The total medical expenses listed add up to $16,325, but the deduction is limited to the amount that exceeds the AGI floor ($2,475). So the final deduction amount would be $16,325 - $2,475 = $13,850, which is answer choice B.

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