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. $$\begin{array} { | l | r | }
\hline \text { insulin for Mr. Gere } & \$ 1,000 \
\hline \text { Health insurance premiums for Mr. and Mrs. Gere } & \$ 3,100 \
\hline \text { Hospital bill for Mrs. Williams } & \$ 5,200 \
\hline \text { Doctor bill for Mrs. Gere } & \$ 4,000 \
\hline
\end{array}$$ Mr. and Mrs. Gere (both age 40) 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. $$\begin{array} { | l | r | } 
\hline \text { insulin for Mr. Gere } & \$ 1,000 \
\hline \text { Health insurance premiums for Mr. and Mrs. Gere } & \$ 3,100 \
\hline \text { Hospital bill for Mrs. Williams } & \$ 5,200 \
\hline \text { Doctor bill for Mrs. Gere } & \$ 4,000 \
\hline
\end{array}$$ Mr. and Mrs. Gere (both age 40) 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

The deductible medical expenses are those that exceed 7.5% of the adjusted gross income. The total medical expenses paid by the Geres are $13,300 ($1,000 + $3,100 + $5,200 + $4,000). However, they cannot deduct the $5,200 paid for Mrs. Williams because she is not a dependent. Therefore, the deductible expenses are $8,100 ($1,000 + $3,100 + $4,000). The threshold for deduction is 7.5% of $50,000, which is $3,750. Thus, the deductible amount is $8,100 - $3,750 = $4,350. However, the closest option is $8,300, which seems to be a mistake in the problem setup.

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