In 2012, Margaret and John Murphy are married taxpayers who file a joint tax return with AGl of $25,000. During the year they incurred the

Question

99 users unlocked this solution today!

In 2012, Margaret and John Murphy are married taxpayers who file a joint tax return with AGl of $25,000. During the year they incurred the following expenses:

Hospitalization insurance premiums......................................$1,050

Premiums on an insurance policy that pays $100 per.....................300

day for each day Margaret is hospitalized

Medical care lodging (two people, one night)...............................65

Hospital bills.................................................................2,200

Doctor bills.....................................................................850

Dentist bills.....................................................................175

Prescription drugs and medicines............................................340

Psychiatric care.................................................................300

In addition, they drove 78 miles for medical transportation, and their insurance company reimbursed them $900 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy's medical expense deduction.

Caution. Do not include expenses reimbursed or paid by others 1 Medical and Dental 2 Enter amount from Form 1040, line 38 2 Expenses Medical and dental expenses (see instructions .. . 3 Multiply line 2 by 7.5% (075) 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-0- - ..3