Problem
Simpson is a single individual under 65 who is employed full-time by Duff Corporation. This year Simpson reports AGI of $73,400 and has incurred the following medical expenses:
Dentist charges $ 1,650
Physician's charges 2,300
Optical charges 710
Cost of eyeglasses 400
Hospital charges 2,400
Prescription drugs 430
Over-the-counter drugs 740
Medical insurance premiums (not through an exchange) 1,025
1. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
2. Suppose that Simpson was reimbursed for $650 of the physician's charges and $800 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.