Question
Gerald and Allison, both age 39, are married and together have AGI of $68,000 in 2016. They have two dependents and file a joint return.
Gerald and Allison, both age 39, are married and together have AGI of $68,000 in 2016. They have two dependents and file a joint return. They pay $7,000 for a high-deductible health insurance policy and contribute $2,000 to a qualified Health Savings Account (HSA). During the year, they paid following amounts for medical care: $4,900 in doctor and dentist bills and hospital expenses and $900 for prescribed medicine and drugs. In November 2016, they received an insurance reimbursement of $1,800 for hospitalization. They expect to receive an additional reimbursement of $500 in January 2017. What amount (if any) is deductible for AGI? The maximum deduction from AGI as an itemized deduction for medical expenses in 2016 is $?
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