Question

Brad, who would otherwise qualify as Faye’s dependent, had gross income of $9,000 during the year. Faye, who had AGI of $120,000, paid the following medical expenses in 2017: Cataract operation for Brad $ 5,400 Brad’s prescribed contact lenses 1,800 Faye’s doctor and dentist bills 12,600 Prescribed drugs for Faye 2,550 Total $22,350 Faye has a medical expense deduction of:

a. $3,150
b. $4,950
c. $10,350
d. $13,350
e. None of the above

Answer 1

Answer:

The correct answer is option (d).

Explanation:

According to the scenario, computation of given data are as follow:-

Faye had AGI of  = $120,000

Total medical expenses paid by Faye in 2017 = $22,350 ($5400+ $1800+ $12,600+ $2,550)

Medical expenses deduction under the AGI in 2017 = 7.5% of AGI

= $120,000 × 7.5 ÷ 100

= $9,000

Faye has a medical expenses deduction = Total medical expense - 7.5% of AGI

= $22,350 – $9,000

= $13,350