Fred and Lucy Are Married and Together Have AGI of $120,000

question 8

Multiple Choice

Fred and Lucy are married and together have AGI of $120,000 in 2012.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 2012, they received an insurance reimbursement of $4,400 for the hospitalization.They expect to receive an additional reimbursement of $1,000 in January 2013.Determine the maximum deduction allowable for medical expenses in 2012.

• A)$1,100.
• B)$3,800.
• C)$9,200.
• D)$12,800.
• E)None of the above.

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Definitions:

Genetic Engineering

The direct manipulation of an organism's genes using biotechnology to alter its characteristics in a specific way.

Prenatal Abnormalities

Any deviations from normal development in an embryo or fetus before birth.

Chemotherapy

A type of cancer treatment that uses one or more anti-cancer drugs as part of a standardized chemotherapy regimen.

Unintended Pregnancies

refer to pregnancies that are either mistimed, such as those occurring sooner than desired, or completely unwanted at the time of conception.