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

question 42

Multiple Choice

Fred and Lucy are married, ages 33 and 32, and together have AGI of $120,000 in 2017. 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 2017, they received an insurance reimbursement of $4,400 for the hospitalization. They expect to receive an additional reimbursement of $1,000 in January 2018. Determine the maximum itemized deduction allowable for medical expenses in 2017.

• A)$800
• B)$3,400
• C)$9,200
• D)$12,800
• E)None of the above

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Definitions:

Affirmative Action

A policy or a set of actions designed to promote equal opportunity for historically disadvantaged groups within employment, education, and other areas.

Future Discrimination

The act of unfairly treating individuals or groups based on predicted future characteristics, actions, or behaviors which have not yet occurred.

Verbal Misconduct

Inappropriate or offensive language used in a professional or personal setting, which can harm the workplace environment or personal relationships.

Sexual Harassment

Unwanted sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature, especially in the workplace.