LO.2 Hunter and Cynthia are married and together have AGI of $100,000 in 2012.

They have three dependents and file a joint return. They pay $3,000 for a high-deductible health insurance policy and contribute $2,400 to a qualified Health Savings Account.

During the year, they paid the following amounts for medical care: $6,900 in physician and dentist bills and hospital expenses and $2,300 for prescribed medicine and drugs.

In November 2012, they received an insurance reimbursement of $2,500 for the physician and hospital expenses. They expect to receive an additional reimbursement of

$1,500 in January 2013. Determine the maximum deduction allowable for medical expenses in 2012.