Question
Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $55,000 and has incurred
Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $55,000 and has incurred the following medical expenses:
Dentist charges | $ | 1,370 |
Physician charges | 2,630 | |
Optical charges | 655 | |
Cost of eyeglasses | 345 | |
Hospital charges | 4,150 | |
Prescription drugs | 685 | |
Over-the-counter drugs | 725 | |
Medical insurance premiums (not through an exchange) | 1,260 | |
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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