Problem
Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $60,400 and has incurred the following medical expenses:
|
Dentist charges
|
$ 960
|
|
Physician charges
|
2,420
|
|
Optical charges
|
990
|
|
Cost of eyeglasses
|
490
|
|
Hospital charges
|
2,600
|
|
Prescription drugs
|
355
|
|
Over-the-counter drugs
|
825
|
|
Medical insurance premiums (not through an exchange)
|
930
|
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 $500 of the physician's charges and $1,700 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.