## Related questions with answers

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 $\$119,254.61$.

They had $\$14,191$ in medical expenses. Medical insurance covered 80% of these expenses.

Therefore, they paid $\$2,838.20$ 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 $\$11,924.56$.

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 ($\$0$).

$\textbf{Medical expenses paid out-of-pocket}$:

$\$14,191 \cdot .20 = \$2,838.20$

$\textbf{10\% of adjusted gross income}$:

$\$119,245.61 \cdot .10 = \$11,924.56$

$\$2,838.20<\$11,924.56$

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