Problem 515 Medical Expenses (L0 5.5) In 2021, Margaret and John Murphy (age 66 and 68, respectively) are married taxpayers who file a joint tax return with AGI of $27,254. During the year they incurred the following expenses: Medical insurance premiums $1,200 Premiums on an insurance policy that pays $100 per 400 day for each day Margaret is hospitalized Medical care lodging (two people, one night) 140 Hospital bills 2500 Herbal supplements 75 Dentist bills 240 Prescription drugs and medicines 350 Cosmetic surgery 400 In addition, they drove 100 miles For medical transportatlon, and their insurance company reimbursed them $450 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy's medical expense deduction. If required, round any amount to the nearest dollar. Enter all amounts as positive numbers. Caution. Do not include expenses reimbursed or paid by others. Medical 1 Medical and dental expenses (see instructions) .............. and 2 Enter amount from Form 1040 or 1040-5R, Dental line 11 ..... 23.108 X Expenses 3 Multiply line 2 by 7.5% (0.075) ............................ 4 Subtract line 3 from line 1. It line 3 is more than line 1, enter -0- .......................... 4 1,887.3 X Feedback VCheokMyWork Medical expenses are the rst itemized deduction on Schedule A. Taxpayers are allowed a deduction for the medical expenses paid for themselves, their spouse, and dependents. Expenses that are deductible as medical expenses include the cost of items for the diagnosis, cure, mitigation, treatment, and prevention of disease. Also included are expenditures incurred that affect any structure or function of the body. Payments for special equipment purchased and installed in the taxpayer's home for medical reasons may also be deductible. Unreimbursed medical expenses can only be deducted to the extent that they exceed 7.5 percent of the taxpayer's AGI