Question

Amanda works as an industrial designer. Her Adjusted Gross Income (AGI) is $60,000. Due to an emergency, she had to spend $6,500 on medical expenses. Is she eligible for a tax deduction, and if so, how much?
A.

no; she is ineligible for a tax deduction

B.

yes; a tax deduction on the entire medical expense

C.

yes; a tax deduction on any amount spent above 10% of her AGI

D.

no; her medical bill is less than 20% of her AGI

Answer 1

The correct answer is Choice C.

Beginning Jan. 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year that exceeds 10% of their adjusted gross income.

Answer 2

Answer:

The correct answer is c.

Explanation:

Amanda is eligible for tax deduction for medical expenses. But not for the full amount, because once your adjusted gross income is calculated, you can only deduct the amount that exceeds 10% of your adjusted gross income.

Since Amanda's adjusted gross income (AGI) is $60,000, 10% of this amount is $6000 and her medical expenses were $6500, she will only be able to deduct $500.

Have a nice day!