Marilyn,Ed's daughter who would otherwise qualify as his dependent,filed a joint return with her husband Henry.Ed,who had AGI of $150,000,incurred the following expenses: Ed has a medical expense deduction of:
A) $0.
B) $50.
C) $1,250.
D) $12,500.
E) None of the above.

Question

Marilyn,Ed's daughter who would otherwise qualify as his dependent,filed a joint return with her husband Henry.Ed,who had AGI of $150,000,incurred the following expenses:  Ed has a medical expense deduction of:
A) $0. 
B) $50. 
C) $1,250. 
D) $12,500. 
E) None of the above.

Quizplus · Accepted Answer

According to IRS rules, if a taxpayer can be claimed as a dependent on someone else's tax return, then the taxpayer cannot claim a deduction for medical expenses unless the taxpayer has earned income of more than $4,300. Ed's daughter Marilyn filed a joint return, which means that Ed cannot claim her as a dependent. Therefore, Ed can claim a deduction for his medical expenses. His medical expense deduction is limited to the amount that exceeds 7.5% of his AGI, or $11,250 ($150,000 x 7.5%). His total medical expenses were $12,500, so his deduction is $1,250 ($12,500 - $11,250).

Marilyn,Ed's Daughter Who Would Otherwise Qualify as His Dependent,filed a Joint