Reggie, who is 55, had AGI of $21,600 in 2016. During the year, he paid the following medical expenses: Drugs (prescribed by physicians) $ 225 Marijuana (prescribed by physicians) 1,425 Health insurance premiums–after taxes 875 Doctors’ fees 1,275 Eyeglasses 400 Over-the-counter drugs 225 Reggie received $525 in 2016 for a portion of the doctors’ fees from his insurance. What is Reggie’s medical expense deduction?
Medical expense deduction = ?
Expert Answer
Medical expense deduction: | IRS allows to deduct qualified medical expenses that exceed 10% of your adjusted gross income for the year | |
Particulars | Amount | Remarks |
AGI (A) | 21,600.00 | |
Allowable medical expenses | ||
Drugs (prescribed by physician) | 225.00 | |
Marijuana (prescribed) | 1,425.00 | |
Insurance premiums | 875.00 | |
Doctors fees | 1,275.00 | |
Eyeglasses | 400.00 | |
Over the counter drugs | 0.00 | Disallowed since not prescribed |
Insurance received | -525.00 | Disallowed since reimbursement |
Allowable medical expenses(B) | 3,675.00 | |
10% of AGI© | 2,160.00 | |
Medical expense deduction | 1,515.00 | (B-C) |