Fred and Lucy Are Married, Ages 33 and 32, and Together

question 10

Multiple Choice

Fred and Lucy are married, ages 33 and 32, and together have AGI of $120,000 in 2018. 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: $9,200 in doctor and dentist bills and hospital expenses, and $3,000 for prescribed medicine and drugs. In October 2018, they received an insurance reimbursement of $4,400 for the hospitalization. They expect to receive an additional reimbursement of $1,000 in January 2019. Determine the maximum itemized deduction allowable for medical expenses in 2018.

• A) $800
• B) $3,800
• C) $9,200
• D) $12,800
• E) None of the above

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Definitions:

Dieting

The practice of eating food in a regulated and supervised fashion to decrease, maintain, or increase body weight.

Secure Attachment

A type of attachment characterized by feelings of safety and security in relationships, often resulting from consistent and responsive caregiving in early childhood.

Avoidant Attachment

A type of attachment characterized by a desire to maintain independence and emotional distance from others, often as a result of negative childhood experiences.

Anxious Attachment

A type of attachment characterized by worry and anxiety about being abandoned or not being close enough to loved ones.