Question

Ethan is itemizing deductions on his federal income tax return and had $4200 in medical expenses last year. If his AGI was $39,000, and if medical expenses are deductible to the extent that they exceed 7.5% of a taxpayer's AGI, how much can Ethan deduct for medical expenses?

Answer 1

The answer is $1275

Step-by-step explanation:

First we will find 7.5% of Ethan's income we will multiply 39000 by 0.075

`39000*0.075` = $2925

His total medical expense = $4200

We will subtract $2925 from this total medical expenses to know the deductible.

`4200-2925` = $1275

Hence, Ethan's deductible will be $1275.