Question

Problem: 2 taxpayers age 66 and 68 married and file joint tax return , AGI $26,100

-medical insurance premiums $1300

-premiums on an insurance policy that pays $100 per day for each day spent in hospitalized $400

-medical care lodging (twobpeople , one night ) $65

-hospital bills $2100

-doctor bills $850

-dentist bills $200

-prescription drugs and medicines$340

-psychiatric care $350

they drove 80 milles for medical , their insurance reimbursed$800 for the above expenses

on schedule A what is the medical and dental expenses line 1

Answer 1

As per Schedule A you can deduct expenses paid for medical and dentist care for yourself and your spouse which exceed 7.5% of the adjusted gross income.

So in this case AGI is $ 26,100 of which 7.5% is $1,957.5 .

Also all the medical expenses fall into the inclusion category which care allowed for deduction hence the total of all expenses come to $ 5,605

Out of this the amount reimbursed by the insurance company is to be reduced.

Hence the net amount available for deduction is $ 5,605 - $ 800 = $4,805

Out of this 7.5% is not allowed

Therefore deduction that can taken = $4,805 - $1,957.5 = $ 2,847.5