Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 10, Problem 15CE
LO.2 Barbara incurred the following expenses during the year: $840 dues at a health club she joined at the suggestion of her physician to improve her general physical condition, $240 for multiple vitamins and antioxidant vitamins, $500 for a smoking cessation program, $250 for nonprescription nicotine gum, $600 for insulin, and $7,200 for funeral expenses for her mother who passed away in June. Before considering the AGI limitation, what amount may Barbara include in computing her medical expense deduction?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Barbara incurred the following expenses during the year: $840 dues at ahealth club she joined at the suggestion of her physician to improve her generalphysical condition, $240 for multiple vitamins and antioxidant vitamins, $500for a smoking cessation program, $250 for nonprescription nicotine gum, $600 forinsulin, and $7,200 for funeral expenses for her mother who passed away in June.Before considering the AGI limitation, what amount may Barbara include in computingher medical expense deduction?
Edna spent the last 80 days of 2021 in a nursing home. The cost of the services provided to her was
$24,000 ($300 per day). Medicare paid $14,000 toward the cost of her stay. Edna also received $14,000
of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily
excludible amount is $400.
If the amount is zero, enter 0.
What is the effect on Edna's gross income?
The amount of her exclusion is $
and the amount included in her gross income is $
Theresa Morgan of Boone, IA, age 55, recently suffered a stroke. Her total bill for this care was $125,500. After leaving the hospital,
she spent 25 days in a nursing home that cost $170 per day. Theresa, who earns $4,500 per month, missed two months of work.
Theresa had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause
with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no
long-term care or disability insurance. She was out of work for a total of 42 days.
How much of Theresa's direct medical expenses was paid by her insurance policy?
C
How much income did Theresa lose?
Chapter 10 Solutions
Individual Income Taxes
Ch. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - LO.2 David, a sole proprietor of a bookstore, pays...Ch. 10 - LO.2 Jayden, a calendar year taxpayer, paid 16,000...Ch. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - LO.5 Thomas purchased a personal residence from...Ch. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - LO.6, 8 William, a high school teacher, earns...Ch. 10 - LO.2 Barbara incurred the following expenses...Ch. 10 - Prob. 16CECh. 10 - Prob. 17CECh. 10 - Prob. 18CECh. 10 - Prob. 19CECh. 10 - Prob. 20CECh. 10 - Prob. 21CECh. 10 - Prob. 22PCh. 10 - Prob. 23PCh. 10 - LO.2 Paul suffers from emphysema and severe...Ch. 10 - LO.2 For calendar year 2019, Jean was a...Ch. 10 - LO.2 During 2019, Susan incurred and paid the...Ch. 10 - In May, Rebeccas daughter, Isabella, sustained a...Ch. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 33PCh. 10 - Prob. 34PCh. 10 - On December 27, 2019, Roberta purchased four...Ch. 10 - Prob. 36PCh. 10 - Prob. 37PCh. 10 - Prob. 38PCh. 10 - LO.2, 3, 4, 5, 6, 7 Linda, who files as a single...Ch. 10 - LO.2, 3, 4, 5, 6, 7 For calendar year 2019, Stuart...Ch. 10 - Prob. 41CPCh. 10 - Marcia, a shareholder in a corporation with stores...Ch. 10 - Prob. 4RPCh. 10 - Prob. 1CPACh. 10 - Prob. 2CPACh. 10 - Prob. 3CPACh. 10 - Kurstie received a 800 state income tax refund...Ch. 10 - Which of the following would preclude a taxpayer...Ch. 10 - Prob. 6CPA
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Lisa, age 45, needed some cash so she withdrew $50,000 from her Roth IRA. At the time the distribution, the balance in the Roth IRA was $200.000Lisa established the Roth IRA eight years ago. Through a conversion and annual contributions, she has contributed $20,000 to er account. What amount of the distribution is taxable and subject to early distribution penalty?arrow_forwardSal required surgery for a the removal of a tumor. His total bill for medical services was $90,000. Sal has a medical expense policy with a $1,000 calendar-year deductible and a $5,000 annual out-of-pocket limit. His coinsurance percentage is 20 percent. The out- of-pocket limit applies to coinsurance only. This surgery and hospitalization were the first medical care that Sal received during the year and that all of the hospital services were eligible for coverage under the policy. of which $ is for his deductible and $ Sal will pay a total of $ of the total bill. is for coinsurance. Sal's health insurer will pay $ of the expense. If Sal incurs a $700 covered medical expense later this year, he will pay $arrow_forwardJenny Smith, age 57, is single. Jenny earned wages of $52,000 and was enrolled the entire year in a high deductible healthplan (HDHP) with self-only coverage. During the year, Jenny contributed $2,000 to her Health Savings Account (HSA) and hermother also contributed $1,000 to Jenny's HSA account. Jenny's Form W-2 shows $650 in Box 12 with code W. She has Form 5498-SA showing$3,650 in Box 2.. Jenny took a distribution from her HSA to pay her unreimbursed expenses: 8 visits to a physical therapist after her knee surgery $400 unreimbursed doctor bills for $900 prescription medicine $200 replacement of a crown $1,500 over the counter medication $40 gym membership $240 Jenny is a U.S. citizen with a valid Social Security number. 6. Form 8889, Part 1 is used to report HSA contributions made by _______________. a. Jenny b. Jenny's employer c. Jenny's mother d. All of the above Jenny is eligible to contribute an additional $1,000 to her HSA because she is age 55…arrow_forward
- Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $133,000. After being discharged from the hospital, she spent 25 days in nursing home at a cost of $240 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability income insurance. Round your answers to the nearest dollar. a. How much of Christina's direct medical expenses was paid by her insurance policy? $ b. What did Christina have to pay for her nursing home care? $ c. How much income did Christina lose? $arrow_forwardssssssssssssarrow_forwardlive’s daughter Polly suffers from a rare illness. During the current year, Olive drove Polly to see a specialist in another state 20 times. Each trip was 325 miles each way and required an overnight stay in a hotel that costs $80 per night. Olive and Patty spent a very reasonable $600 for meals, approximately $40/night for dinner and $15/day for breakfast. Olive’s AGI is $25,000. What is her medical expense deduction for the current year (assume the mileage rate is 16¢ per mile in 2021 and she itemizes)? $0 $1,805 $1,875 $3,680arrow_forward
- Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $132,500. After being discharged from the hospital, she spent 25 days in a nursing home at a cost of $290 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability income insurance. Round your answers to the nearest dollar. How much of Christina’s direct medical expenses was paid by her insurance policy? $ What did Christina have to pay for her nursing home care? $ How much income did Christina lose? $arrow_forwardBelinda spent the last 60 days of 2021 in a nursing home. The cost of the services provided to her was $18,000 ($300 per day). Medicare paid $8,500 toward the cost of her stay. Beliinda also received $7,500 of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily excludible amount is $400. If the amount is zero, enter 0. What is the effect on Belinda's gross income? Her available exclusion is $ therefore, the amount included in her gross income is Sarrow_forwardMedical Expense Deduction. In 2021, Charla, a single taxpayer with no dependents, was severely hurt in a farm accident. Charla is 38 years old. The accident left Charla's legs 85% paralyzed. After incurring $14,000 of medical expenses at the hospital, the doctor recommended that Charla install a pool at her home for therapy. The pool cost $25,000 to install and increased the value of her home by $22,000. She spent $930 maintaining the pool in 2021 and $1,060 in 2022. Charla also purchased a wheelchair on December 28, 2021, for $2,300, which she charged to her credit card. She paid her credit card bill on January 6, 2022. She also purchased a hospital bed for $3,800 but did not pay for the bed until 2022. Charla paid her physical therapist $4,000 for services performed in 2022. Charla paid $1,200 in medical insurance premiums on an after-tax basis in both 2021 and 2022. In 2022, the insurance company reimbursed Charla $9,000 for her hospital stay in 2021. Her AGI for 2021 and 2022 is…arrow_forward
- Randy is advised by his physician to install an elevator in his residence, since he is afficted with heart disease. The cost of installing the elevator is 10,000 and it has an estimated useful life of 10 years. He installs the elevator in January of the current year, and it increases the value of is residence by $8,000. Disregarding the limitation based on adjusted gross income, how much of the cost of the elevator may Randy take into account in determining his medical expense deduction for the current year?arrow_forwardGodoarrow_forwardBelinda spent the last 60 days of 2019 in a nursing home. The cost of the services provided to her was $18,000 ($300 per day). Medicare paid $8,500 toward the cost of her stay. Belinda also received $5,500 of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily excludible amount is $370. What is the effect on Belinda’s gross income?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
Understanding U.S. Taxes; Author: Bechtel International Center/Stanford University;https://www.youtube.com/watch?v=QFrw0y08Oto;License: Standard Youtube License