Mr. and Mrs. Compton paid $9,280 of medical expenses that were not reimbursed by their private insurance

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Mr. and Mrs. Compton paid $9,280 of medical expenses that were not reimbursed by their private insurance provider. Compute the after-tax cost of these expenses assuming that:

a. The Comptons itemize deductions on their joint tax return, their AGI is $87,000, and their marginal tax rate is 24 percent.

b. The Comptons itemize deductions on their joint tax return, their AGI is $424,000, and their marginal tax rate is 35 percent.

c. The Comptons take the standard deduction on their joint tax return, their AGI is $39,000, and their marginal tax rate is 12 percent.

Assume the taxable year is 2018.

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Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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