Question
Jan Thomas, who is under age 65, is an employee of an engineering firm, had an adjusted gross income of $80,000 in the year, and
Jan Thomas, who is under age 65, is an employee of an engineering firm, had an adjusted gross income of $80,000 in the year, and qualifies to itemize deductions. Assume a 10 percent AGI threshold when calculating the medical expense deduction. Jan provided the following expenses to her CPA to use for the itemized medical expenses on Schedule A of her tax return for the year:
Medical insurance premiums paid $8,000
Deductible paid for medical insurance 1,000
Hospital costs for emergency room visit 2,000
Vitamins for general health 500
Prescription eyeglasses 200
Visits to the doctor and dentist 700
Health club dues for general health 1,200
Insurance co-pays for prescription drugs 300
Mandatory Medicare A payments 1,160
Transportation to doctor's office for required medical care 100
Insurance reimbursement for hospital visit 1,500
What is the total amount of medical expenses that will be deductible on Jan's Schedule A for the current year?
A. $0
B. $4,800
C. $6,500
D. $6,300
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