During 20187, Sarah, age 29, had adjusted gross income of $12,000 and paid the following amounts for medical expenses: 

Medical insurance
$400
Prescription medications
$160
Hospital bills
$575
Doctors' bills
$310
Dental bills
$180
In 2018, Sarah drove 139 miles for medical transportation in her personal automobile, and she uses the standard mileage allowance. Her insurance company reimbursed Sarah $300 during the year for the above medical expenses. Using the schedule below, calculate the amount of Sarah's deduction for medical and dental expenses for the 2018 tax year. 
______________________________
$_________
______________________________
__________
______________________________
__________
______________________________
__________
______________________________
__________
______________________________
__________
______________________________
__________
Total
$_________
Less 7.5% of adjusted gross income
__________
Medical deduction
$_________

What will be an ideal response?


Medical insurance$400 
Prescription medications160 
Payments to hospitals575 
Payments to doctors310 
Dental bills180 
Transportation (139 × $0.18)25 
Less insurance reimbursement(300)Total$1,350 
Less 7.5% of $12,000, adjusted gross income(900)Medical deduction$450 

Business

You might also like to view...

Answer the following statements true (T) or false (F)

Hypotheses and theories are based on an informal method of investigation.

Business

In a __________ merger, the shares in the disappearing corporation are automatically converted into shares in the surviving corporation

a. cash out b. noncash c. freeze out d. liquidation

Business

What is a finite-source model? Give an example of its appropriate use

What will be an ideal response?

Business

A profitability index can be used to rank investment proposals. Required:A. Define the profitability index.B. Two projects are under consideration. Project I has a net present value of $20,000 whereas project II has a net present value of $200,000. Which project is better? Explain. What weakness in a net-present-value analysis does the profitability index address?

What will be an ideal response?

Business