In 2021, 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. i (Click the icon to view additional information on expenses paid.) Caitlin has no other itemized deductions in either year. (Click the icon to view the standard deduction schedule.) Read the requirements. .. Requirement a. What is Caitlin's taxable income for 2021? Begin by calculating the qualified medical expense deduction for 2021. (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.) Hospital bills $ 18.000 Excess cost of pool over increased value of home 2,000 Maintenance of pool 990 Medical insurance premium 600 Wheelchair 2,400 23,990 Medical expenses Less: 7.5% percent of AGI (3,150) 20,840 Qualified medical expense deduction Now calculate Caitlin's 2021 taxable income. Adjusted gross income (AGI) $ 42,000 Minus: Deductions from AGI: Itemized deductions (20,840) $ 21,160 Taxable income Requirement b. What is Caitlin's medical expense deduction for 2022? How does she treat the reimbursement? Now calculate Caitlin's 2021 taxable income. Adjusted gross income (AGI) $ 42,000 Minus: Deductions from AGI: Itemized deductions (20,840) 21,160 Taxable income Requirement b. What is Caitlin's medical expense deduction for 2022? How does she treat the reimbursement? First, let's determine the proper treatment for the reimbursement of the medical expense. Caitlin's adjusted gross income will be increased by 11340 - More info After incurring $18,000 of medical expenses at the hospital, the doctor recommended that Caitlin install a pool at her home for therapy. The pool cost $31,000 to install and increased the value of her home by $29,000. She spent $990 maintaining the pool in 2021 and $1,090 in 2022. Caitlin also purchased a wheelchair on December 28, 2021, for $2,400, which she charged to her credit card. She paid her credit card bill on January 6, 2022. She also purchased a hospital bed for $4,700 but did not pay for the bed until 2022. Caitlin paid her physical therapist $4,300 for services performed in 2022. Caitlin paid $600 in medical insurance premiums on an after-tax basis in both 2021 and 2022. In 2022, the insurance company reimbursed Caitlin $9,500 for her hospital stay in 2021. Her AGI for 2021 and 2022 is $42,000 and $50,000, respectively, not considering any of the above items. Print Done In 2021, 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. i (Click the icon to view additional information on expenses paid.) Caitlin has no other itemized deductions in either year. (Click the icon to view the standard deduction schedule.) Read the requirements. .. Requirement a. What is Caitlin's taxable income for 2021? Begin by calculating the qualified medical expense deduction for 2021. (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.) Hospital bills $ 18.000 Excess cost of pool over increased value of home 2,000 Maintenance of pool 990 Medical insurance premium 600 Wheelchair 2,400 23,990 Medical expenses Less: 7.5% percent of AGI (3,150) 20,840 Qualified medical expense deduction Now calculate Caitlin's 2021 taxable income. Adjusted gross income (AGI) $ 42,000 Minus: Deductions from AGI: Itemized deductions (20,840) $ 21,160 Taxable income Requirement b. What is Caitlin's medical expense deduction for 2022? How does she treat the reimbursement? Now calculate Caitlin's 2021 taxable income. Adjusted gross income (AGI) $ 42,000 Minus: Deductions from AGI: Itemized deductions (20,840) 21,160 Taxable income Requirement b. What is Caitlin's medical expense deduction for 2022? How does she treat the reimbursement? First, let's determine the proper treatment for the reimbursement of the medical expense. Caitlin's adjusted gross income will be increased by 11340 - More info After incurring $18,000 of medical expenses at the hospital, the doctor recommended that Caitlin install a pool at her home for therapy. The pool cost $31,000 to install and increased the value of her home by $29,000. She spent $990 maintaining the pool in 2021 and $1,090 in 2022. Caitlin also purchased a wheelchair on December 28, 2021, for $2,400, which she charged to her credit card. She paid her credit card bill on January 6, 2022. She also purchased a hospital bed for $4,700 but did not pay for the bed until 2022. Caitlin paid her physical therapist $4,300 for services performed in 2022. Caitlin paid $600 in medical insurance premiums on an after-tax basis in both 2021 and 2022. In 2022, the insurance company reimbursed Caitlin $9,500 for her hospital stay in 2021. Her AGI for 2021 and 2022 is $42,000 and $50,000, respectively, not considering any of the above items. Print Done