Question

Kaye Blanchard is 50 years old. She has $30,000 of adjusted gross income and $8,000 of qualified medical expenses. She will be itemizing her tax deductions this year. How much of a tax deduction will Kaye be able to deduct (assume 10% floor for deduction)?

Answer 1

deductible expenses = $5000

Step-by-step explanation:

given data

gross income = $30,000

medical expenses = $8,000

floor for deduction = 10 %

to find out

How much of a tax deduction will Kaye be able to deduct

solution

we find here deductible expenses that is express as

deductible expenses = medical expenses - ( 10% × gross income ) ...............1

put here value we get

deductible expenses = 8000 - ( 10% × $30,000 )

deductible expenses = 8000 - ( 3000 )

deductible expenses = $5000