Mr. & Mrs. Gere. who are filin
January 18th, 2023
Mr. & Mrs. Gere. who are filing a joint return, haveadjusted gross income of $50,000. During the tax year, they paidthe following medical expenses for themselves and for Mr.s Gere’smother, Mrs. Watson. The Gere’s claim Mrs. Wastson as adependent.
Insulin for Mr. Gere $1,000
Health Insurance premiums for Mrs. Gere $3,100
The hospital bill for Mrs. Watson $5,200
Doctor bill for Mrs. Gere $4,000
Mr. & Mrs. Gere received no reimbursement for the aboveexpenditures. Calculate the amount of their deductible itemizedmedical expenses.
Answer:
| Note: | |||
| Deductible Medical Expense | |||
| Payment of fees to doctors | |||
| Payment for in patient hospital care or residential nursinghome care | |||
| Payment of Insulin and payment for drugs as per perprescription | |||
| Payment for transportation primarily essential for medicalcare | |||
| Payment of Insurance Premium you paid for policies that covermedical care | |||
| 7.5% of Adjusted gross income in 2017 and 2018 allowed asmedical expenses. | |||
| 10% of Adjusted gross income in2019 allowed as medicalexpenses. | |||
| Year | 2018 | ||
| Adjusted Gross Income= | $ 50,000.00 | ||
| 7.5% of Adjusted Gross Income=($50000*7.5%) | $ 3,750.00 | ||
| Medical Expenses Allowed as deduction | |||
| Isulin for Mr Gere | $ 1,000.00 | ||
| Health Insurance Premium for Mrs.Gere | $ 3,100.00 | ||
| Hospital bill for Mrs.Watson | $ 5,200.00 | ||
| Doctor bill for Mrs Gere | $ 4,000.00 | ||
| Total | $ 13,300.00 | ||
| Deduction=($13300-$3750) | $ 9,550.00 | ||
| Deductible itemized medical expenses= | $ 9,550.00 | ||
| Year | 2019 | ||
| Adjusted Gross Income= | $ 50,000.00 | ||
| 7.5% of Adjusted Gross Income=($50000*10%) | $ 5,000.00 | ||
| Medical Expenses Allowed as deduction | |||
| Isulin for Mr Gere | $ 1,000.00 | ||
| Health Insurance Premium for Mrs.Gere | $ 3,100.00 | ||
| Hospital bill for Mrs.Watson | $ 5,200.00 | ||
| Doctor bill for Mrs Gere | $ 4,000.00 | ||
| Total | $ 13,300.00 | ||
| Deduction=($13300-$3750) | $ 8,300.00 | ||
| Deductible itemized medical expenses= | $ 8,300.00 |
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