Fred and Lucy are married,ages 33 and 32,and together have AGI of $120,000 in 2014.They have four dependents and file a joint return.They pay $5,000 for a high deductible health insurance policy and contribute $2,600 to a qualified Health Savings Account.During the year,they paid the following amounts for medical care: $9,200 in doctor and dentist bills and hospital expenses,and $3,000 for prescribed medicine and drugs.In October 2014,they received an insurance reimbursement of $4,400 for the hospitalization.They expect to receive an additional reimbursement of $1,000 in January 2015.Determine the maximum itemized deduction allowable for medical expenses in 2014.

Question

Quizplus · Accepted Answer

Fred and Lucy can claim an itemized medical expense deduction for the current year of $800,determined as follows:
 11ea86f6_cc00_9b2c_8084_f9ecff5561a2_TB4134_00 The contribution of $2,600 to the HSA is a deduction for AGI,and is not included in the medical expense calculation.

Fred and Lucy Are Married,ages 33 and 32,and Together Have