In 2014, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint

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In 2014, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint tax return with AGl of $25,000. During the year they incurred the following expenses:

Medical insurance premiums……………………………………………….              $1,050

Premiums on an insurance policy that pays $100 per………………………     300

 day for each day Margaret is hospitalized

Medical care lodging (two people, one night) ……………………………..            65

Hospital bills……….……………………………………………………….                         2,200

Doctor bills………………………………………………………………….                            850

Dentist bills………………………………………………………………….                           175

Prescription drugs and medicines……………………………………………             340

Psychiatric care………………………………………………………………                        300

In addition, they drove 78 miles for medical transportation, and their insurance company reimbursed them $900 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy’s medical expense deduction.
In 2014, Margaret and John Murphy (both over age 65)
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Income Tax Fundamentals 2015

ISBN: 9781305177772

33rd Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill

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