Danny and Lilly are married and together have AGI of $50,000. They have two dependents and file a joint return. Each pays $1,200 for hospitalization insurance. During the year, they paid the following amounts for medical care: $5,000 in doctor and dentist bills and hospital expenses, and $1,700 for prescribed medicine and drugs. In December, they received an insurance reimbursement of $1,700 for hospitalization. Determine the deduction allowable for medical expenses paid during the year.