Medical Expense Deduction

Question 1

Carroll, a 35-year-old unmarried taxpayer with an adjusted gross income of $100,000, incurred and paid the following unreimbursed medical expenses:

*Doctor bills resulting from a serious fall $5,000

*Cosmetic surgery that was necessary to correct a congenital deformity $15,000 (this is cosmetic but to correct a deformity so is deductible)

Carroll had no medical insurance. For regular income tax purposes, what was Carroll’s maximum allowable medical expense deduction, after the applicable threshold limitation, for the year?

Answer 1

$100,000*7.5% = $7500

$5000 + $20000 = $20,000 - $7500 = $12,500