Richard, age 50, is employed as an actuary. for calendar year 2019, he had agi of $130,000 and paid the following medical expenses:
medical insurance premiums $5,300
doctor and dentist bills for derrick and jane (richard's parents) 7,900
doctor and dentist bills for richard 5,100
prescribed medicines for richard 830
nonprescribed insulin for richard 960
derrick and jane would qualify as richard's dependents except that they file a joint return. richard's medical insurance policy does not cover them. richard filed a claim for $4,800 of his own expenses with his insurance company in november 2019 and received the reimbursement in january 2020. what is richard's maximum allowable medical expense deduction for 2018?
a. $0
b. $7,090
c. $10,340
d. $20,090
e. none of the above

c. $10,340

Explanation:

For year 2018, the deduction for medical expense is amount of qualified medical expense that exceeds 7.5% of AGI.

Expenditure Richard can deduct as medical expense = $5300 + $7900 + $5100 + $830 + $960 - 7.5% * $130000

= $10,340

As such option c is correct and other options a, b, d and e are incorrect.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answerconversion factor;