Question

9:45 Scenario 1 (Margot Margot (64) is filing as a single taxpayer. Her adjusted gross income during the year was $32,000. This is the amount entered on her Form 1040, line 7. She will itemize deductions when she files her 2018 federal Form 1040 To seek relief for a medical condition, Margot traveled to a clinic in another state during the year. She incurred the following trip-related expenses: $75 for a room in a hotel near the clinic (one night). $450 for a round-trip airplane ticket. $60 to rent a car to drive to and from the clinic and the airport. $80 for non-hospital meals while she was away from home. Margot is not eligible for employer-sponsored health insurance. In addition to the travel expenses, Margot incurred the following non-trip related, out-of-pocket medical expenses: $2,000 net out-of-pocket for health insurance premiums (paid with after-tax dollars). $2,300 for prescriptions. $350 in co-pays to her doctor. $250 for new glasses. $300 for dental x-rays.

Answer 1

Particulars	Incurred	Admissible	Reason
Room in hotel near clinic	75	50	Maximum $50 per night is admissible
Flight	450	450
Car rent Airport to Clinic	60	60
Non-hospital meals	80	0	These meals are not allowable as consumed outside hospital
Health insurance	2000	2000	Allowable since not employer does not provide health insurance
Prescriptions	2300	2300
Co pays to doctor	350	350
New Glasses	250	250	Assumed glasses are for medical reasons
Dental X Rays	300	300
Qualifying Expenses	5865	5760
Computation of Deduction to be claimed		$
AGI		32000
7.5% of AGI		2400
Qualifying Medical Expenses		5760
Amount to be claimed as deduction		3360	In excess of 7.5% of AGI for year 2018