contestada

Fred and Lucy are married, ages 33 and 32, and together have AGI of $120,000 in 2019. They have four dependents and file a joint return. They pay $5,000 for a high deductible health insurance policy and contribute $2,600 to a qualified Health Savings Account. During the year, they paid the following amounts for medical care: $9,200 in doctor and dentist bills and hospital expenses, and $3,000 for prescribed medicine and drugs. In October 2019, they received an insurance reimbursement of $4,400 for the hospitalization. They expect to receive an additional reimbursement of $1,000 in January 2020. Determine the maximum itemized deduction allowable for medical expenses in 2019.

Respuesta :

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.