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Patrick and Leah Are Married and Together Have AGI of $100,000

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Patrick and Leah are married and together have AGI of $100,000 in 2011.They have three dependents and file a joint return.They pay $3,000 for a high deductible health insurance policy and contribute $2,400 to a qualified Health Savings Account.During the year,they paid the following amounts for medical care: $8,200 in doctor and dentist bills and hospital expenses,and $2,500 for prescribed medicine and drugs.In December 2011,they received an insurance reimbursement of $3,400 for hospitalization.They expect to receive an additional reimbursement of $1,700 in January 2012.Determine the maximum deduction allowable for medical expenses in 2011.


Definitions:

Underlying Purpose

The fundamental reason or objective behind an action, strategy, or piece of work.

Negative Feedback

A response mechanism where the output of a system is used to adjust or control its further actions, typically to reduce differences from a desired state.

Feedback

The information given to individuals regarding their performance or behavior, intended to guide future improvements.

System Purpose

The intended goal or function that a system is designed to achieve within a specific context.

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