Marci is single and her adjusted gross income is $30,000.In addition,she pays the following expenses during the year:
Marci pays $600 for medical insurance premiums and receives a reimbursement of $1,000 from the insurance company for her medical expenses.Compute her medical deduction.

Question

Marci is single and her adjusted gross income is $30,000.In addition,she pays the following expenses during the year:  ​
Marci pays $600 for medical insurance premiums and receives a reimbursement of $1,000 from the insurance company for her medical expenses.Compute her medical deduction.

Quizplus · Accepted Answer

Marci can deduct her medical expenses that exceed 7.5% of her adjusted gross income. 
She paid $600 in medical insurance premiums and received a $1,000 reimbursement, so her net medical expense for the year is -$400. Since this is a negative number, she cannot deduct any medical expenses. Therefore, the answer is choice C, which is $750.

Marci Is Single and Her Adjusted Gross Income Is $30,000