Determine maximum deduction allowable for medical expense

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Question - Mario and Jessica are married, ages 33 and 32, and together have AGI of $140,000 in 2014. They have four dependents and file a joint return. They pay $5,000 for a high deductible health insurance policy and contribute $2,600 to a qualified Health Savings Account. During the year, they paid the following amounts for medical care: $12,200 in doctor and dentist bills and hospital expenses, and $4,000 for prescribed medicine and drugs. In October 2014, they received an insurance reimbursement of $5,400 for the hospitalization. They expect to receive an additional reimbursement of $1,000 in January 2015. Determine the maximum deduction allowable for medical expenses in 2014.

a. $1,800.

b. $3,400.

c. $9,200.

d. $12,800.

e. None of the above.

Reference no: EM132069501

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