Reggie, who is 55, had AGI of $32,400 in 2020. During the year, he paid the following medical expenses: Drugs (prescribed by physicians) Marijuana (prescribed by physicians) Health insurance premiums-after taxes $ 535 1,435 885 Doctors' fees 1,285 Eyeglasses Over-the-counter drugs 410 235 Required: Reggie received $535 in 2020 for a portion of the doctors' fees from his insurance. What is Reggie's medical expense deduction?
Reggie, who is 55, had AGI of $32,400 in 2020. During the year, he paid the following medical expenses: Drugs (prescribed by physicians) Marijuana (prescribed by physicians) Health insurance premiums-after taxes $ 535 1,435 885 Doctors' fees 1,285 Eyeglasses Over-the-counter drugs 410 235 Required: Reggie received $535 in 2020 for a portion of the doctors' fees from his insurance. What is Reggie's medical expense deduction?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Problem 5-51 (LO 5-1)
Reggie, who is 55, had AGI of $32,400 in 2020. During the year, he paid the following medical expenses:
Drugs (prescribed by physicians)
Marijuana (prescribed by physicians)
Health insurance premiums-after taxes
Doctors' fees
$535
1,435
885
1,285
410
Eyeglasses
Over-the-counter drugs
235
Required:
Reggie received $535 in 2020 for a portion of the doctors' fees from his insurance. What is Reggie's medical expense deduction?
Medical expense deduction
Expert Solution
Step 1
Since marijuana cannot be legally procured as per federal statute, the cost to procure is not deductible even if they have been prescribed by the physician.
Similarly, over-the-counter drugs are not a qualifying medical expense.
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