The Internal Revenue Service (IRS) is auditing Form 1040, U.S. Individual Income Tax Return, for the following individual clients for Year 2, and the audits are focused on medical expenses claimed. Calculate the allowable Year 2 deductible medical expenses for each taxpayer, if any, before the adjusted gross income (AGI) limitation. Assume that there are no insurance reimbursements of medical expenses unless otherwise noted.

For each item, enter the appropriate amounts in the associated cells. If the amount is zero, enter a zero (0). Enter all amounts as positive values.

Medical costs reported by taxpayers in Year 2

1. Taxpayer A

Medical costs reported in Year 2 include the following:

Prescription drugs: $450

Herbal weight-loss supplements and vitamins recommended by physician: $1,200

Eye examinations and eyeglasses: $650

Removal of appendix: $2,800

Allowable deductible?

2. Taxpayer B

Medical costs reported in Year 2 include the following:

Medical insurance premiums paid from after-tax income: $1,500

Tooth extraction: $900

Surgery to remove facial wrinkles: $3,500

Nonprescription drugs: $200

Hearing aid: $2,600

Received medical insurance reimbursements of $500 in Year 2 and $200 in January of Year 3 for these expenses

Allowable deductible?

3. Taxpayer C

Medical costs reported in Year 2 include the following:

Drug rehabilitation expenses: $4,400

Wheelchair purchase: $800

Health club membership fee: $700

Plastic surgery to correct injuries sustained in an auto accident: $7,500

Allowable deductible?

4. Taxpayer D

Medical costs reported in Year 2 include the following:

Emergency room fees: $2,800

Cost of crutches: $150

Dental insurance premium: $700

Cost of wigs relating to hair loss resulting from chemotherapy treatments: $2,000

Received medical insurance reimbursement of $1,000 in Year 2

Allowable deductible?

5. Taxpayer E

Medical costs reported in Year 2 include the following:

Prescription drugs: $2,600

Annual physical exam: $750

Cost of liposuction: $1,800

Foot surgery: $1,600

Allowable deductible?

6. Taxpayer F

Medical costs reported in Year 2 include the following:

Transportation costs for medical and dental examinations: $125

Physical therapy expenses: $6,200

Dental implants: $6,500

Hearing aid batteries: $25

Nonprescription drugs recommended by physician to aid sleep: $250

Received medical insurance reimbursement of $750 in Year 3 for these expenses

Allowable deductible?