Simpson is a single individual under 65 who is employed full-time by Duff Corporation. This year Simpson reports AGI of $73,800 and has incurred the following medical expenses:
Dentist charges $ 1,080
Physician's charges 2,140
Optical charges 940
Cost of eyeglasses 725
Hospital charges 3,750
Prescription drugs 375
Over-the-counter drugs 935
Medical insurance premiums (not through an exchange) 1,060
a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.
b. Suppose that Simpson was reimbursed for $650 of the physician's charges and $1,820 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.