Question

Benton is itemizing deductions on his federal income tax return and had $5600 in medical expenses last year. If his AGI was $55000 and if medical expenses are deductible to the extent that they exceed 7.5% of a taxpayer’s AGI, how much can Benton deduct for medical expenses?

Answer 1

$1475 apex answer ...............................................

Answer 2

The answer is $1475.

Step-by-step explanation:

The AGI is = $55,000

Medical expenses amount = $5600

If medical expenses are deductible to the extent that they exceed 7.5% or 0.075 of a taxpayer’s AGI, means
`55000*0.075=4125`

Now the deductible amount is
`5600-4125=1475`

Hence, Benton can deduct $1475 for medical expenses.