Question

Meghan paid $9,212 for medical insurance and also had $5,700 in medical expenses last year. Her medical insurance covered 80% of these expenses. The IRS allows medical and dental expense deductions for the amount that exceeds 7.5% of a taxpayer's adjusted gross income. If Meghan's adjusted gross income is $65,432, how much can she claim as a medical deduction?

Answer 1

Answer:

Meghan cannot claim any amount as a medical deduction.

Step-by-step explanation:

Given that:

Amount paid by Meghan for insurance = $9212

Meghan's medical expenses = $5700

Her medical insurance covers 80% of these expenses

Meghan's adjusted gross income = $65,432

Her medical expenses that are not covered under medical insurance is:

$= 5700 \times (1- \dfrac{80}{100})$

$= 5700 \times (0.2)$

= $1140

Similarly, 7.5% of her gross income is;

= 65,432 × (7.5/100)

=$4907.4

Since $1140 < $4907.4

The amount of $1140 does not  exceed $4907.4

Thus, Meghan cannot claim any amount as a medical deduction.