Question

Peter, 65, and Audrey, 62, had medical expenses in 2023 of $12,000, paid eligible long-term care insurance premiums of $4,000, and paid $20,000 for Audrey's facelift. If they had an adjusted gross income of $100,000, how much is their medical expense deduction

Answer 1

Peter and Audrey can deduct the portion of their medical expenses that exceeds 7.5% of their adjusted gross income (AGI).
7.5% of $100,000 AGI = $7,500 threshold.
Total medical expenses: $12,000 + $4,000 + $20,000 = $36,000.
Excess over the threshold: $36,000 - $7,500 = $28,500.

Their medical expense deduction is $28,500.