Simpson, age 45, is a single individual 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 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 $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.
Simpson, age 45, is a single individual 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 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 $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.
A taxpayer can deduct the itemized deductions from the adjusted gross income. These deductions reduce the tax burden of the taxpayer. Mortgage interest, medical expenses, dental expenses, charitable contributions, interest on student loan and investment interest are few examples of itemized deductions.
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