Simpson is a single individual who is employed full-time by Duff Corporation.

This year Simpson reports AGI of $50,000 and has incurred the following medical expenses:

Dentist charges $ 900 Physician’s charges 1,800 Optical charges 500 Cost of eyeglasses 300 Hospital charges 2,100 Prescription drugs 250 Over-the-counter drugs 450 Medical insurance premiums (not through an exchange) 775

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.

48. This year Tim is age 45 and is considering enrolling in an insurance program that provides for long-term care insurance. He is curious about whether the insurance premiums are deductible as a medical expense and, if so, what the maximum amount is that can be deducted in any year.

49. Doctor Bones prescribed physical therapy in a pool to treat Jack’s broken back.

In response to this advice (and for no other reason), Jack built a swimming pool in his backyard and strictly limited use of the pool to physical therapy. Jack paid $25,000 to build the pool, but he wondered if this amount could be deducted as a medical expense. Determine if a capital expenditure such as the cost of a swimming pool qualifies for the medical expense deduction.