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Casey has no other itemized deductions in either year. (Click the icon to view the standard deduction schedule.) In 2019, Casey, a single taxpayer with no dependents, was severely hurt in a farm accident. Casey is 38 years old. The accident left Casey's legs 85% paralyzed. (Click the icon to view additional information on expenses paid.) Read the requirements. Requirement a. What is Casey's taxable income for 2019? Begin by calculating the qualified medical expense deduction for 2019. (If an input field is not used in the table leave the input field(s) empty, do not select a label or enter a zero.) Pink = Word Bank Yellow = # Response Medical expenses Less: Qualified medical expense deduction 10% percent of AGI Word Bank Cost of pool Excess cost of pool over increased value of home Hospital bed Hospital bills Maintenance of pool Medical insurance premium Physical therapy Reimbursement Wheelchair STANDARD DEDUCTION Filing Status $ 24,400 After incurring $12,000 of medical expenses at the hospital, the doctor recommended that Casey install a pool at her home for therapy. The pool cost $34,000 to install and increased the value of her home by $31,000. She spent $1,100 maintaining the pool in 2019 and $1,250 in 2020. Casey also purchased a wheelchair on December 28, 2019, for $2,400, which she charged to her credit card. She paid her credit card bill on January 6, 2020. She also purchased a hospital bed for $4,100 but did not pay for the bed until 2020. Casey paid her physical therapist $4,500 for services performed in 2020. Casey paid $800 in medical insurance premiums on an after-tax basis in both 2019 and 2020. $ 18,350 $ 12,200 $ 12,200 Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100. * These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind. $1,300* In 2020, the insurance company reimbursed Casey $11,000 for her hospital stay in 2019. Her AGI for 2019 and 2020 is $40,000 and $45,000, respectively, not considering any of the above items. $1,650* Note: At the time the book was printed, the percentage of AGI was 10% for 2019. In Dec. 2019, the rate changed to 7.5%. 10% was used for this question. a. b. What is Casey's taxable income for 2019? What is Casey's medical expense deduction for 2020? How does she treat the reimbursement? Casey has no other itemized deductions in either year. (Click the icon to view the standard deduction schedule.) In 2019, Casey, a single taxpayer with no dependents, was severely hurt in a farm accident. Casey is 38 years old. The accident left Casey's legs 85% paralyzed. (Click the icon to view additional information on expenses paid.) Read the requirements. Requirement a. What is Casey's taxable income for 2019? Begin by calculating the qualified medical expense deduction for 2019. (If an input field is not used in the table leave the input field(s) empty, do not select a label or enter a zero.) Pink = Word Bank Yellow = # Response Medical expenses Less: Qualified medical expense deduction 10% percent of AGI Word Bank Cost of pool Excess cost of pool over increased value of home Hospital bed Hospital bills Maintenance of pool Medical insurance premium Physical therapy Reimbursement Wheelchair STANDARD DEDUCTION Filing Status $ 24,400 After incurring $12,000 of medical expenses at the hospital, the doctor recommended that Casey install a pool at her home for therapy. The pool cost $34,000 to install and increased the value of her home by $31,000. She spent $1,100 maintaining the pool in 2019 and $1,250 in 2020. Casey also purchased a wheelchair on December 28, 2019, for $2,400, which she charged to her credit card. She paid her credit card bill on January 6, 2020. She also purchased a hospital bed for $4,100 but did not pay for the bed until 2020. Casey paid her physical therapist $4,500 for services performed in 2020. Casey paid $800 in medical insurance premiums on an after-tax basis in both 2019 and 2020. $ 18,350 $ 12,200 $ 12,200 Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100. * These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind. $1,300* In 2020, the insurance company reimbursed Casey $11,000 for her hospital stay in 2019. Her AGI for 2019 and 2020 is $40,000 and $45,000, respectively, not considering any of the above items. $1,650* Note: At the time the book was printed, the percentage of AGI was 10% for 2019. In Dec. 2019, the rate changed to 7.5%. 10% was used for this question. a. b. What is Casey's taxable income for 2019? What is Casey's medical expense deduction for 2020? How does she treat the reimbursement