Question

Kurt (45 years old) has AGI of $50,000 and $9,000 in qualified medical expenses subject to the 7.5% of AGI floor. If Kurt itemizes his deductions, what amount of medical expenses will be deducted?

Answer 1

Kurt can deduct $5,250 of his medical expenses, which is the amount remaining after subtracting the 7.5% AGI floor ($3,750) from his total medical expenses ($9,000).

Step-by-step explanation:

The student has asked about the deduction of medical expenses from adjusted gross income (AGI) for an individual who is itemizing deductions on their tax return. To calculate the deductible amount, first determine the floor for medical expenses, which is 7.5% of the AGI.

In Kurt's case, 7.5% of his $50,000 AGI would be $3,750. Since Kurt has $9,000 in qualified medical expenses, we subtract the floor ($3,750) from his total expenses to find the deductible amount. Thus, the deductible amount of Kurt's medical expenses would be $9,000 - $3,750 = $5,250.