In 2018, David, age 66, had adjusted gross income of $27,000. During the year he paid...
In 2018, David, age 66, had adjusted gross income of $27,000. During the year he paid the following medical expenses: Prescription medicines $275Doctors $1350 Health insurance premiums insurance $400 Two pairs of eyeglasses $185 What amount can David deduct as medical expenses (after the adjusted gross income limitation) in calculating his itemized deductions for 2018? A $2710 b $2025 c $185 d $0
Homework Answers
Answer:
Correct answer is:
c $185
Explanation:
For 2018, qualified medical expenses that exceed 7.5% of AGI is deductible.
Qualified medical expenses:
Prescription medicines = $275
Doctors = $1350
Health insurance premiums insurance = $400
Two pairs of eyeglasses = $185
Total = 275 +1350 + 400 + 185 = $2,210
7.5% of AGI = 27000 * 7.5% = $2,025
Deductible medical expenses (after the adjusted gross income limitation) = 2210 - 2025 = $185
Hence option c is correct and other options a, b, and d are incorrect.
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