Question
Simpson, age 45, is a single individual who is employed full-time by Duff Corporation. This year Simpson reports AGI of $69,600 and has incurred the
Simpson, age 45, is a single individual who is employed full-time by Duff Corporation. This year Simpson reports AGI of $69,600 and has incurred the following medical expenses:
Dentist charges | $ | 1,430 |
Physician charges | 2,220 | |
Optical charges | 560 | |
Cost of eyeglasses | 670 | |
Hospital charges | 3,300 | |
Prescription drugs | 695 | |
Over-the-counter drugs | 800 | |
Medical insurance premiums (not through an exchange) | 945 | |
a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
b. Suppose that Simpson was reimbursed for $250 of the physician's charges and $1,200 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
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