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

The deductible amount is calculated by subtracting 7.5% of the AGI from the total medical expenses. So, 7.5% of $50,000 is $3,750. Therefore, the deductible amount of medical expenses is $11,050 ($14,800 - $3,750). Since the standard deduction for a married couple filing jointly is $24,400, the Geres would benefit from itemizing their deductions if their total itemized deductions (including medical expenses) exceed $24,400. As $11,050 > $24,400 - hence, the best choice is B.

MrAnd MrsGere,who Are Filing a Joint Return,have Adjusted Gross Income of of $50,000.During