Question

a person has $7,100 in medical expenses and an adjusted gross income of $28,000. if taxpayers are allowed to deduct the amount of medical expenses that exceed 7.50 percent of adjusted gross income, what would be the amount of the deduction in this situation?

Answer 1

First, we need to calculate 7.5% of the adjusted gross income:

7.5% of $28,000 = 0.075 x $28,000 = $2,100

Since the medical expenses exceed $2,100, we can deduct the amount that exceeds this limit:

$7,100 - $2,100 = $5,000

Therefore, the amount of the medical expenses deduction would be $5,000.