Richard, Age 50, Is Employed as an Actuary Derrick and Jane Would Qualify as Richard's Dependents Except That

question 60

Multiple Choice

Richard, age 50, is employed as an actuary. For calendar year 2019, he had AGI of $130,000 and paid the following medical expenses: Medical insurance premiums $5,300 $\begin{array}{lr}\text { Doctor and dentist bills for Derrick and Jane (Richard's parents) } & 7,900 \\\text { Doctor and dentist bills for Richard } & 5,100 \\\text { Prescribed medicines for Richard } & 830 \\\text { Nonprescribed insulin for Richard } & 960\end{array}$ Derrick and Jane would qualify as Richard's dependents except that they file a joint return. Richard's medical insurance policy does not cover them. Richard filed a claim for $4,800 of his own expenses with his insurance company in November 2019 and received the reimbursement in January 2020. What is Richard's maximum allowable medical expense deduction for 2019?

• A) $0
• B) $7,090
• C) $10,340
• D) $20,090
• E) None of these

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Definitions:

Discharging Employees

The process of officially ending an employee's tenure with an organization, often due to redundancy, performance issues, or misconduct.

Job Satisfaction

The level of contentment employees feel about their job, including aspects such as work, pay, and conditions.

Job Hierarchy

A structured arrangement of jobs within an organization, ranked in order of importance or level of responsibility.

Job Satisfaction

The level of fulfillment, contentment, and happiness that an individual feels towards their job.