Jon, age 45, had adjusted gross income of $25,000 in 2015. During the year, he i
ID: 2467367 • Letter: J
Question
Jon, age 45, had adjusted gross income of $25,000 in 2015. During the year, he incurred and paid the following medical expenses:
Drugs and medicines (Rx) prescribed by doctors : $ 300
Health care insurance premiums : $ 750
Doctors' fees for services: $ 2250
Eyeglasses : $ 75
Jon received $900 in 2015 as a reimbursement for a portion of the doctor's fees. If Jon were to itemize his deductions, what would be his allowable medical expense deduction after the adjused gross income (AGI) limitation is taken into account?
a. $ 0
b. $ 425
c. $ 600
d. $ 1000
e. None of the above
Explanation / Answer
Adjusted Gross Income is $25000 and allowable deduction limit is 10% i.e $2500
Total Medical expenses= ($300+$750+2250+$75)=$3375-$900=$2475
Since Total Medical Expenses does not exceeds to the 10% of AGI, jon can not claim any amount for deduction.
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