![Problem 4-3 Calculating Tax Deductions (L04-2] Kaye Blanchard is 74 years old. She has $50.900 of adjusted gross income and $](http://img.homeworklib.com/questions/7acd1710-7231-11ea-af96-dd912e2bac49.png?x-oss-process=image/resize,w_560)
Homework Answers
Note : Since nothing is mentioned in the question, about the year it is assumed that the relevant year for the question is 2020.
Answer : Deductible amount = $5,760.
Explanation :
Beginning in 2020 , IRS allows the amount qualified medical expenses as deduction that exceeds 10 % of adjusted gross income.
Tax deduction for kaye = Qualified medical expenses - (Adjusted gross income * 10%)
= $10,850 - ($50,900 * 10 %)
= $10,850 - $5,090 = $5,760.
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