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Chad is divorced and has custody of Brett, his 14-year old son. Chads ex-wife has custody of their daughter, Sara. During the year, Chad incurs
Chad is divorced and has custody of Brett, his 14-year old son. Chads ex-wife has custody of their daughter, Sara. During the year, Chad incurs $3,000 for orthodontic work for Sara to correct a severe overbite and $2,000 in unreimbursed medical expenses associated with Bretts broken leg. Chad also pays $900 in health insurance premiums, which are withheld from his paycheck on a pre-tax basis. Both Brett and Sara are covered under Chads medical insurance plan. In addition, Chad incurs $400 for prescription drugs and $1,000 in doctor bills for himself. Chads AGI is $40,000. What is Chads allowable medical expense deduction for the year assuming that his other itemized deductions exceed the standard deduction
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