Question - Mario and Jessica are married, ages 33 and 32, and together have AGI of $140,000 in 2014. They have four dependents and file a joint return. They pay $5,000 for a high deductible health insurance policy and contribute $2,600 to a qualified Health Savings Account. During the year, they paid the following amounts for medical care: $12,200 in doctor and dentist bills and hospital expenses, and $4,000 for prescribed medicine and drugs. In October 2014, they received an insurance reimbursement of $5,400 for the hospitalization. They expect to receive an additional reimbursement of $1,000 in January 2015. Determine the maximum deduction allowable for medical expenses in 2014.
a. $1,800.
b. $3,400.
c. $9,200.
d. $12,800.
e. None of the above.