Bill age 65 has 2018 unreimbursed medical expenses totaling

Bill, age 65, has 2018 unreimbursed medical expenses totaling $20,000 and an adjusted gross income of $170,000. What is the amount of such medical expenses he can deduct?

Solution

Unreimbursed medical expenses can be claimed as deduction but subject to some provisons.

Medical costs are deductible only after they exceed 7.5 percent of the Adjusted Gross Income. Thus, the amount of Unreimbursed medical expenses over and above 7.5% of AGI can be claimed as deduction.

Deductions

= 20,000 - (7.5% of 170,000)

= 20,000 - 12,750

= 7,250