Reference no: EM132986340

Question - Neil and Kennedy are married, ages 40 and 42, and both are employees at a local manufacturing facility. Together they have AGI of $110,000 in 2020. They have two dependents and file a joint return. They pay $4,800 for a high deductible health insurance policy and contribute $2,500 to a qualified Health Savings Account. During the year, they paid the following amounts for medical care: $10,000 in doctor and dentist bills and hospital expenses, and $2,400 for prescribed medicine and drugs. In November 2020, they received an insurance reimbursement of $3,600 for the hospitalization. They expect to receive an additional reimbursement of $2,000 in February 2021. Determine the maximum itemized deduction allowable for medical expenses in 2020.