In 2018, Caitlin, a single taxpayer with no dependents, was severely hurt in a farm accident. Caitlin is 38 years old. The accident left Caitlin's legs 85% paralyzed. (Click the icon to view additional information on expenses paid.) Caitlin has no other itemized deductions in either year. 5 (Click the icon to view the standard deduction schedule.) Read the requirements Requirement a. What is Caitlin's taxable income for 2018? Begin by calculating the qualified medical expense deduction for 2018. (If an input field is not used in the table leave the input field(s) empty, do not select a label or enter a zero.) 7.5% percent of AGI -X More Info Medical expenses Less: After incurring $12,000 of medical expenses at the hospital, the doctor recommended that Caitlin install a pool at her home for therapy. The pool cost $34,000 to install and increased the value of her home by $32,000. She spent $990 maintaining the pool in 2018 and $1,090 in 2019. Caitlin also purchased a wheelchair on December 28, 2018, for $2,000, which she charged to her credit card. She paid her credit card bill on January 6, 2019. She also purchased a hospital bed for $4.500 but did not pay for the bed until 2019. Caitlin paid her physical therapist $3,600 for services performed in 2019. Caitlin paid $1,400 in medical insurance premiums on an after-tax basis in both 2018 and 2019. In 2019, the insurance company reimbursed Caitlin $8,000 for her hospital stay in 2018. Her AGI for 2018 and 2019 is $44,000 and $50,000, respectively, not considering any of the above items. Qualified medical expense deduction Choose from any list or enter any number in the input fields and then click Check Answer. $ $ CA STANDARD DEDUCTION Filing Status Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,050. * These amounts are $2,600 and $3,200, respectively, for a taxpayer who is both aged and blind. 24,000 18,000 12,000 12,000 $1,300* $1,600* $