Reggie, who is 55, had AGI of $32,000 in 2019. During the year, he paid the...

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Reggie, who is 55, had AGI of $32,000 in 2019. During the year, he paid the following medical expenses: Drugs (prescribed by

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Answer 1

Answer #1

Answer:

Computation of medical expense deduction

Description		Amount

Drugs prescribed by physician	$500
Add:
Health insurance premium after tax	$850
Doctors fees	$1250
Eye glasses	$375

Total		$2975

Less:
Insurance reimbursement		($500)

7.5% of AGI
($32000*7.5%)		($2400)

Medical Expense Deduction		$75
($2975 - $500 - $2400)

Note:

Since marijuana cannot be legally procured as per federal statute. The cost to procure it is not deductible even if they have been prescribed by the physician. Similarly over-the-counter drugs are not a qualifying medical expense.

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