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1 January, 07:03

Brad, who would otherwise qualify as Faye's dependent, had gross income of $9,000 during the year. Faye, who had AGI of $120,000, paid the following medical expenses in 2017: Cataract operation for Brad $ 5,400 Brad's prescribed contact lenses 1,800 Faye's doctor and dentist bills 12,600 Prescribed drugs for Faye 2,550 Total $22,350 Faye has a medical expense deduction of:

a. $3,150

b. $4,950

c. $10,350

d. $13,350

e. None of the above

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Answers (1)
  1. 1 January, 07:30
    0
    The correct answer is option (d).

    Explanation:

    According to the scenario, computation of given data are as follow:-

    Faye had AGI of = $120,000

    Total medical expenses paid by Faye in 2017 = $22,350 ($5400 + $1800 + $12,600 + $2,550)

    Medical expenses deduction under the AGI in 2017 = 7.5% of AGI

    = $120,000 * 7.5 : 100

    = $9,000

    Faye has a medical expenses deduction = Total medical expense - 7.5% of AGI

    = $22,350 - $9,000

    = $13,350
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