The Threshold Amount for the Deductibility of Allowable Medical Expenses

question 40

Multiple Choice

The threshold amount for the deductibility of allowable medical expenses for those under 65 in 2016 is:

• A)10% of taxable income.
• B)7)5% of AGI.
• C)7)5% of taxable income.
• D)10% of AGI.

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Definitions:

Calories

A measure of energy in food, scientifically defined as the amount of energy needed to raise the temperature of 1 kilogram of water by 1 degree Celsius.

Marginal Utility

refers to the additional satisfaction or utility gained from consuming one more unit of a good or service.

Millionaires

Millionaires are individuals whose net worth or wealth is equal to or exceeds one million units of currency.

Budget Line

A graphical representation showing the combination of goods a consumer can purchase and consume within their income level at specific prices.