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In 2010, Margaret and John Murphy are married taxpayers who file a joint tax return with AG1 of $25,000. During the year they incurred the following expenses:

Hospitalization insurance premiums $1,050
Premiums on an insurance policy that pays 300
$100 per day for each day Margaret is hospitalized
Medical care lodging (two people, one night) 65
Hospital bills 2.200
Doctor bills 850
Dentist bills 175
Prescription drugs and medicines 340
Psychiatric-care 300

In addition, during the year they drove 109 miles for medical transportation, and their insurance company reimbursed them $900 for the above expenses. find out the Murphy's medical expense deduction.

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M958997

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