FEDERAL INCOME TAXATION OF INDIVIDUALS HANDOUT PROBLEM 9 Score Name Section Problem (10 points). Jolene and Abraham, who are married and file ajoint retum, incurred the attached medical expenses and taxes during the current year. They received $4.000 in reimbursements from their insurance company of which $300 is for the cosmetic surgery. Their adjusted gross income is $59.500. They are residents of the state of Tennessee and they have no children or dependents. REQUIRED: (1) What is the amount of the deduction for medical expenses they would be allowed if they itemized deductions? Show appropriate calculations. What is the amount of the deduction for taxes they would be allowed if they itemized deductions? Show appropriate calculations. (2) OL 3.500 02 950 1925 $75 170 220 1.450 165 TAXPAYERS JOLENE AND ABRAITAM MEDICAL EXPENSES AND TAXES INCURRED DURING CURRENT TAX YEAR Medical insurance premiums 5 Hospital expenses Doctors Dentist Veterin Chiropractor Cosmetic surgery Over the counter drugs Prescription drugs Crutches Federal tax withheld State income tax withheld Suite les taxes from actual receipts Real estate taxes on primary residence Property tax on car (ad valorem) Social Security tax Gasoline taxes Excise taxes Sales tax on motor vehicle purchased during your 195 105 5.125 1.900 370 1.740 215 4324 124 112 1,600 FEDERAL INCOME TAXATION OF INDIVIDUALS HANDOUT PROBLEM 9 Score Name Section Problem (10 points). Jolene and Abraham, who are married and file ajoint retum, incurred the attached medical expenses and taxes during the current year. They received $4.000 in reimbursements from their insurance company of which $300 is for the cosmetic surgery. Their adjusted gross income is $59.500. They are residents of the state of Tennessee and they have no children or dependents. REQUIRED: (1) What is the amount of the deduction for medical expenses they would be allowed if they itemized deductions? Show appropriate calculations. What is the amount of the deduction for taxes they would be allowed if they itemized deductions? Show appropriate calculations. (2) OL 3.500 02 950 1925 $75 170 220 1.450 165 TAXPAYERS JOLENE AND ABRAITAM MEDICAL EXPENSES AND TAXES INCURRED DURING CURRENT TAX YEAR Medical insurance premiums 5 Hospital expenses Doctors Dentist Veterin Chiropractor Cosmetic surgery Over the counter drugs Prescription drugs Crutches Federal tax withheld State income tax withheld Suite les taxes from actual receipts Real estate taxes on primary residence Property tax on car (ad valorem) Social Security tax Gasoline taxes Excise taxes Sales tax on motor vehicle purchased during your 195 105 5.125 1.900 370 1.740 215 4324 124 112 1,600
