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

Ed can only claim a medical expense deduction for expenses that exceed 7.5% of his AGI or $11,250 ($150,000 x 7.5%). Since his medical expenses total $12,500, he can deduct $1,250 ($12,500 - $11,250).

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