Question

Nathan is itemizing deductions on his federal income tax return and had $5800 in his medical expenses last year. If his AGI was $46,000, and if medical expenses are deductible to the extent that they exceed 7.5% of a taxpayer’s AGI, how much can Nathan deduct for medical expenses?

Answer 1

2350

Explanation:

Answer 2

Multiply his AGI by 7.5% to find the amount medical needs to meet before deducting:

46,000 x 0.075 = $3,450

He can deduct any amount over $3450.

Subtract that from his medical total to find the amount he can deduct:

5800 - 3450 = 2350

He can deduct $2,350.