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Paul and Patty Black (Both Are Age 66) Are Married

question 101

Essay

Paul and Patty Black (both are age 66) are married and together have AGI of $140,000 in 2015.They have two dependents and file a joint return.During the year,they paid $8,000 for medical insurance,$15,000 in doctor bills and hospital expenses,and $1,000 for prescribed medicine and drugs.
a.In December 2015,the Blacks received an insurance reimbursement of $3,500 for hospitalization expenses.Determine the deduction allowable for medical expenses paid during the year.
b.Assume instead that the Blacks received the $3,500 insurance reimbursement in February 2016.Determine the deduction allowable for medical expenses incurred in 2015.
c.Assume that the Blacks received the $3,500 insurance reimbursement in February 2016.Discuss whether the reimbursement will be included in their gross income for 2016.

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Definitions:

Genetic Drift

A mechanism of evolution that results in random changes in the frequency of alleles within a population over time.

Allele Frequencies

The proportion of different alleles of the same gene within a given population.

Cladistics

Making hypotheses about evolutionary relationships among clades.

Shared Characteristics

Traits or features that are common across a group of organisms, indicating a degree of genetic, structural, or functional similarity.

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