Problem 5-15 Medical Expenses (LO 5.6)

In 2020, Margaret and John Murphy (age 66 and 68, respectively) are married taxpayers who file a joint tax return with AGl of $28,108. During the year they incurred the following expenses:

Medical insurance premiums	$1,200
Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized	400
Medical care lodging (two people, one night)	80
Hospital bills	2,200
Doctor bills	750
Dentist bills	240
Prescription drugs and medicines	360
Marriage counseling	400

In addition, they drove 90 miles for medical transportation, and their insurance company reimbursed them $850 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 and Dental Expenses	1	Medical and dental expenses (see instructions) . . . . . . . . . . . . . .				1	fill in the blank 1
	2	Enter amount from Form 1040 or 1040-SR, line 11. . . . .	2	fill in the blank 2
	3	Multiply line 2 by 7.5% (0.075) . . . . . . . . . . . . . . . . . . . . . . . . . . . .				3	fill in the blank 3
	4	Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . .							4	fill in the blank 4