Mr. and Mrs. Gere, who are filing a joint return, have adjusted gross income of $50,000. During the tax year, they paid the following medical expenses for themselves and for Mrs. Gere's mother, Mrs. Williams. The Gere's could claim Mrs. Williams as their dependent, but she has too much gross income. Mr. and Mrs. Gere received no reimbursement for the above expenditures. What is the amount of their deductible itemized medical expenses?
A)$5,200
B)$8,300
C)$4,300
D)$13,300

Question

Mr. and Mrs. Gere, who are filing a joint return, have adjusted gross income of $50,000. During the tax year, they paid the following medical expenses for themselves and for Mrs. Gere's mother, Mrs. Williams. The Gere's could claim Mrs. Williams as their dependent, but she has too much gross income.  Mr. and Mrs. Gere received no reimbursement for the above expenditures. What is the amount of their deductible itemized medical expenses?
A)$5,200 
B)$8,300 
C)$4,300 
D)$13,300

Quizplus · Accepted Answer

To calculate the deductible medical expenses, we need to subtract 7.5% of AGI from the total medical expenses. Therefore:

$4,000 + $1,500 + $1,800 + $1,000 + $200 + $900 = $9,400 total medical expenses
$50,000 x 7.5% = $3,750
$9,400 - $3,750 = $5,650 deductible medical expenses

Since $5,650 is higher than the standard deduction for married filing joint taxpayers ($24,800 for tax year 2020), it is beneficial for Mr. and Mrs. Gere to itemize their deductions and claim the $5,650 as deductible medical expenses. Therefore, the correct answer is B.

Mr and Mrs