Question: Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $55,600 and has incurred
Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $55,600 and has incurred the following medical expenses:
| Dentist charges | $ 1,490 |
|---|---|
| Physician charges | 2,600 |
| Optical charges | 750 |
| Cost of eyeglasses | 435 |
| Hospital charges | 4,450 |
| Prescription drugs | 485 |
| Over-the-counter drugs | 815 |
| Medical insurance premiums (not through an exchange) | 1,085 |
a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
b. Suppose that Simpson was reimbursed for $290 of the physician's charges and $3,550 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
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