The total of Susan's expenses that qualify for the medical expense deduction is $45,270
To calculate Susan's medical expenses that qualify for the deduction, we'll consider the expenses that fall within the IRS guidelines for medical deductions. Qualified medical expenses for the medical expense deduction typically include costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease.
Here's a breakdown of the qualifying expenses:
1. Surgery for Beth: $4,500 (Qualifies)
2. Red River Academy charges for Beth's tuition: $5,100 (Qualifies as specialized psychiatric treatment)
3. Room, board, and other expenses for Beth: $4,800 (Qualifies as part of treatment at Red River Academy)
4. Psychiatric treatment for Beth: $5,100 (Qualifies)
5. Doctor bills for ED: $2,200 (Qualifies)
6. Prescription drugs for Susan, Beth, and ED: $780 (Qualifies)
7. Insulin for ED: $540 (Qualifies)
8. Nonprescription drugs for Susan, Beth, and ED: $570 (Does not qualify)
9. Charges at Heartland Nursing Home for ED: $5,000 (Qualifies)
10. Lodging at Heartland Nursing Home for ED: $2,700 (Qualifies)
11. Meals at Heartland Nursing Home for ED: $2,650 (Qualifies)
12. Filtration system and cost of installation: $6,500 (Qualifies)
13. Increase in utility bills due to the system: $700 (Does not qualify as it's not a direct medical expense)
14. Cost of certified appraisal: $360 (Does not qualify)
Now, let's add up the qualifying expenses:
Total qualifying expenses = $4,500 + $5,100 + $4,800 + $5,100 + $2,200 + $780 + $540 + $5,000 + $2,700 + $2,650 + $6,500 = $45,270
Therefore, the answer is $45,270.
The complete question is here:
During the current year, Susan incurred and paid the following expenses for Beth (her daughter), ED (her father), and herself. Surgery for Beth........................................................ $4,500 Red River Academy charges for Beth Tuition.................................................................. $5,100 Room, board, and other expenses................................... $4,800 Psychiatric treatment ................................................ $5,100 Doctor Bills for ED.................................................... $2,200 Prescription drugs for Susan, Beth, and ED........................ $780 Insulin for ED...........................................................$540 Nonprescription drugs for Susan, Beth, and ED................... $570 Charges at Heartland Nursing Home for ED Medical Care........................................................ $5,000 Lodging.............................................................. $2,700 Meals................................................................. $2,650 Beth qualifies as Susan's dependent and Ed would also qualify except that he receives $7,400 of taxable retirement benefits from his former employer. Beth's psychiatrist recommended Red River Academy because of its small classes and specialized psychiatric treatment program that is needed to treat Beth's illness. Ed is a paraplegic and diabetic and Heartland offers the type of care that he requires. Upon the recommendation of a physician, Susan has an air filtration system installed in her personal residence. She suffers from severe allergies. In connection with this equipment, Susan incurrrs and pays the following amounts during the year. Filtration system and cost of installation......................... $6,500 Increase in utility bills due to the system.......................... $700 Cost of certified appraisal........................................... $360 The system has an estimated useful life of 10 years. The appraisal was to determine the value of Susan's residence with and without the system. The appraisal states that the system increased the value of Susan's residence by $2,200. Ignoring the 7.5% floor, what is the total of Susan's expenses that qualify for the medical expense deduction?