Andy had AGI of $80,000 for 2011. He was injured in a rock-climbing accident and paid $5,200 for hospital expenses and $2,800 for doctor bills. Andy also incurred medical expenses of $2,400 for his child, Jodi, who lives with his former wife, Pearl, and is claimed as a dependant by her. In 2012, Andy was reimbursed $2,600 by his insurance company for the medical expenses attributable to the rock-climbing accident.
a. Compute Andy’s deduction for medical expenses in 2011.
b. Assume that Andy would have elected to itemize his deductions even if he had no included in gross income on 2012?
c. Assume that Andy’s other itemized deductions in 2011 were $5300 and that he filed as a head of household. How much of the $2600 reimbursement must he include in gross income in 2012?