Question
Simpson is a single individual under 65 who is employed full-time by Duff Corporation. This year Simpson reports AGI of $73,800 and has incurred the
Simpson is a single individual under 65 who is employed full-time by Duff Corporation. This year Simpson reports AGI of $73,800 and has incurred the following medical expenses:
Dentist charges | $ | 1,080 |
Physician's charges | 2,140 | |
Optical charges | 940 | |
Cost of eyeglasses | 725 | |
Hospital charges | 3,750 | |
Prescription drugs | 375 | |
Over-the-counter drugs | 935 | |
Medical insurance premiums (not through an exchange) | 1,060 | |
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 $650 of the physician's charges and $1,820 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpsons itemized deductions after any applicable limitations. |
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