Emma Doyle, age 55, is employed as a corporate attorney. For calendar year 2015, she had AGI of $100,000 and paid the following medical expenses:

Medical insurance premiums	$3,700
Doctor and dentist bills for Bob and April (Emma's parents)	6,800
Doctor and dentist bills for Emma	5,200
Prescription medicines for Emma	400
Nonprescription insulin for Emma	350

Bob and April would qualify as Emma's dependents except that they file a joint return. Emma's medical insurance policy does not cover them. Emma filed a claim for reimbursement of $2,800 of her own expenses with her insurance company in December 2015 and received the reimbursement in January 2016.

What is Emma's maximum allowable medical expense deduction for 2015? Complete a memo for your firm's tax files in which you document your conclusions.

TAX FILE MEMORANDUM

February 26, 2016

FROM: Sam Massey

SUBJECT: Emma Doyle's medical expense deduction

Emma Doyle's medical expense deduction is $___________ determined as follows:

Medical insurance premiums	$3,700
Doctor and dentist bills for Bob and April	6,800
Doctor and dentist bills for Emma	5,200
Prescription medicines for Emma	400
Nonprescription insulin for Emma	350
Total medical expenses	$ ______
Less: 10% of AGI	_______
Deductible portion of medical expenses	$_______

Although Bob and April can or cannot be claimed as Emma's dependents, they couldor could not have been had they not filed a joint return. Therefore, medical expenses incurred on their behalf qualify for the medical expense deduction. Insulin is exception not or exception to the rule that nonprescription drugs qualifyor do not qualifyas medical expenses. The insurance recovery was not received until 2016. Therefore, it has effect or no effect on the medical expense deduction for 2015.