Question

In 2018, Margaret and John Murphy (age 66 and 68, respectively) are married taxpayers who file a joint tax return with Al of $25,400. During the year they incurred the following expenses: Medical insurance premiums $1,150 400 Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized Medical care lodging (two people, one night) Hospital bills 2,100 Doctor bills Dentist bills 175 Prescription drugs and medicines 340 Psychiatric care 350 In addition, they drove 83 miles for medical transportation, and their insurance company reimbursed them $900 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy's medical expense deduction. If required, round any amount to the nearest dollar. Enter all amounts as positive numbers.

Answer 1

Answer :-

Medical and dental Expense	1. Medical and dental Expenses (Note 1)		$4,145
	2. Enter Amount from form 1040,line 7 (Note -2)	$25,400
	3.Multiply line 2 by 7.5 % (.075)		$1,905
	4.Subtract line 3 from line 1.if line 3 is more than line 1,enter -0			$2,240

Note 1 : -

Calculation of medical and dental Expenses is as follows -

Medical insurance premium	$1,150
Medical care lodging	$65
Hospital bill	$2,100
Doctors bill	$850
Dentist bill	$175
Prescription drugs and medicines	$340
Psychiatry care	$350
Transportation cost (83 miles × 0.18 ) Standard mileage rate of medical expenses is 18 cents for 2018)	$15
Less :- Insurance company reimbursed	($900)
Medical and dental Expenses	$4145

Note 2 :-

Here we have taken joint tax return with the AGI of $25,400 .