During 2016, Abby sustains serious injuries from a snow-skiing accident. She incurs the following expenses:

IDoctor bills $10,900

Hospital bills 9,900

Legal fees in suit against ski resort 2,600 is single and has no dependents. For the year, her salary is $62,000.She pays $1,000 in medical and dental insurance premiums, which is withheld from her paycheck on an after-tax basis, $2,760 in mortgage interest on her home, and $1,100 in interest on her car loan. Her health insurance provider reimburses her for $7,500 of the medical expenses.

ANSWER, USING:

STANDARD DEDUCTION
Filing Status
Married individuals filing joint returns and surviving spouses		$12,600
Heads of households		9,300
Unmarried individuals (other than surviving spouses and heads of households)		6,300
Married individuals filing separate returns		6,300
Additional standard deduction for the aged and the blind
	Individual who is married and surviving spouses	1,250	*
	Individual who is unmarried and not a surviving spouse	1,550	*
Taxpayer claimed as dependent on another taxpayers return: Greater of (1) earned income plus $350 or (2) $1,050.
* These amounts are $2,500 and $3,100, respectively, for a taxpayer who is both aged and blind. PERSONAL AND DEPENDENCY EXEMPTION AND PHASE-OUTS Personal and dependency exemption $4,050 Phase-outs for high income taxpayers: Personal and dependency exemptions are reduced by 2% for each $2,500 increment (or part of increment) for AGI above the threshold amount. Itemized deductions are reduced by 3% for each dollar of AGI above the threshold amounts (taxpayers cannot lose more than 80% of their allowable itemized deductions). For both provisions, the AGI threshold amounts are: Married individuals filing joint returns and surviving spouses $311,300 Heads of households 285,350 Unmarried individuals (other than surviving spouses and heads of households) 259,400 Married individuals filing separate returns 155,650