Final answer:
Megan can report $1,780 of medical and dental expenses on Schedule A (Form 1040) Line 4, calculated by subtracting 7.5% of her AGI from the total of her qualified medical expenses, which excludes her elective procedure costs.
Step-by-step explanation:
To calculate the amount of medical and dental expenses Megan can report on Schedule A (Form 1040) Line 4, we need to consider the IRS rules for medical expenses deductions.
First, only the expenses that are more than 7.5% of a taxpayer's adjusted gross income (AGI) are deductible. Therefore, we have to calculate 7.5% of Megan's AGI. Megan's AGI is $70,000, so 7.5% of $70,000 is $5,250.
Now, we will tally Megan's medical expenses that are deductible under the tax law.
These include prescriptions, doctor co-pays, dental bills, and health insurance premiums paid with after-tax dollars.
To find Megan's total medical expenses:
Health insurance premiums: $1,800
Total medical expenses before reduction: $1,480 + $950 + $2,800 + $1,800 = $7,030
However, the expense for elective procedures such as 'excessive tummy tuck surgery' is not deductible.
Therefore, we do not include the tummy tuck surgery expense of $6,500 in the calculations.
To determine the deductible amount, we subtract the 7.5% AGI threshold from the total medical expenses:
$7,030 - $5,250 = $1,780
Thus, Megan can report $1,780 of medical and dental expenses on Schedule A (Form 1040) Line 4.