Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $67,200 and has incurred the following medical expenses:Dentist charges$ 1,200Physician charges2,370Optical charges565Cost of eyeglasses485Hospital charges2,700Prescription drugs265Over-the-counter drugs735Medical insurance premiums (not through an exchange)855 a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.b. Suppose that Simpson was reimbursed for $350 of the physician's charges and $1,800 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

A precise expense that a taxpayer can deduct from their taxable income to lower the amount of income…

Answered: impson, age 45, is a single individual…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter10: Individuals: Income, Deductions, And Credits

Section: Chapter Questions

Problem 3BCRQ

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Question

Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $67,200 and has incurred the following medical expenses:

Dentist charges	$ 1,200
Physician charges	2,370
Optical charges	565
Cost of eyeglasses	485
Hospital charges	2,700
Prescription drugs	265
Over-the-counter drugs	735
Medical insurance premiums (not through an exchange)	855

a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

b. Suppose that Simpson was reimbursed for $350 of the physician's charges and $1,800 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

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