Answer:
$800
Explanation:
Fred and Lucy's itemized medical expenses are:
doctor and dentist bills + hospital expenses $9,200
minus reimbursements ($4,400)
unreimbursed expenses $4,800
Health insurance premiums $5,000
Prescribed medicines and drugs $3,000
Total medical expenses $12,800
minus 10% of AGI = 10% x $120,000 ($12,000)
Deductible medical expenses $800
Contribution to qualified Health Savings Accounts are deducted directly from the AGI, and should not be included as medical expenses.