Brad,who would otherwise qualify as Faye's dependent,had gross income of $9,000 during the year.Faye,who had AGI of $120,000,paid the following medical expenses in 2013: Assuming Faye is age 45,she has a medical expense deduction of:
A)$3,150.
B)$4,950.
C)$10,350.
D)$13,350.
E)None of the above.

Question

Brad,who would otherwise qualify as Faye's dependent,had gross income of $9,000 during the year.Faye,who had AGI of $120,000,paid the following medical expenses in 2013:  Assuming Faye is age 45,she has a medical expense deduction of:
A)$3,150. 
B)$4,950. 
C)$10,350. 
D)$13,350. 
E)None of the above.

Quizplus · Accepted Answer

To determine Faye's medical expense deduction, we first need to calculate her adjusted gross income (AGI) limitation. The limitation is 10% of Faye's AGI because she is under the age of 65. 
10% x $120,000 = $12,000 
Next, we have to subtract the total medical expenses that exceeds the AGI limitation. 
$21,500 - $12,000 = $9,500 
Therefore, Faye's medical expense deduction is $9,500. 
Note that Brad's gross income has no impact on Faye's medical expense deduction.

Brad,who Would Otherwise Qualify as Faye's Dependent,had Gross Income of $9,000