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The Kivetsky family had an adjusted gross income of $119,245.61. They included medical deductions on Schedule A. They had$14,191 in medical expenses. Medical insurance covered 80% of these expenses. The IRS allows medical and dental expenses deductions for the amount that exceeds 10% of a taxpayer's adjusted gross income. How much can they claim as a medical deduction?
Solution
VerifiedThe Kivetsky family had an adjusted gross income of .
They had in medical expenses. Medical insurance covered 80% of these expenses.
Therefore, they paid out-of-pocket for medical expenses.
The IRS allows medical deductions for the amount that exceeds 10% of a taxpayer's adjusted gross income.
10% of their adjusted gross income is equivalent to .
Because their out-of-pocket medical expenses were less than 10% of their adjusted gross income, they can not claim any amount as a medical deduction ().
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