Fred and Lucy are married, ages 33 and 32, and together have AGI of $100,000 in 2019. Neither is self-employed. They have four dependents and file a joint return. During the year, they paid $5,000 for a high deductible health insurance policy and contributed $2,600 to a qualified Health Savings Account. They also paid the following amounts for medical care: $9,200 in doctor and dentist bills and for hospital expenses and $3,000 for prescribed medicine and drugs. They used $1,600 from their Health Savings Account to pay some of the doctor and hospital expenses. In October 2019, they received an insurance reimbursement of $4,400 for the doctor and dental bills and medicine. They received an additional reimbursement of $1,000 in January of 2020. Assuming that they will claim itemized deductions, determine the itemized deduction allowable for medical expenses in 2019.

a. $200

b. $1,200

c. $3,700

d. $12,800

e. $0