Question
John and Mary are married, ages 33 and 32, and together have AGI of $140,000 in 2014. They have four dependents and file a joint
John and Mary are married, ages 33 and 32, and together have AGI of $140,000 in 2014. They have four dependents and file a joint return. They pay $5,000 for a high deductible health insurance policy and contribute $2,600 to a qualified Health Savings Account. During the year, they paid the following amounts for medical care: $12,200 in doctor and dentist bills and hospital expenses, and $4,000 for prescribed medicine and drugs. In October 2014, they received an insurance reimbursement of $5,400 for the hospitalization. They expect to receive an additional reimbursement of $1,000 in January 2015. Determine the maximum deduction allowable for medical expenses in 2014.
a) $1,800. |
b) $3,400. |
c) $9,200. |
d) $12,800. |
None of the above. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started