3. Tax Problem:
Simpson is a single individual who is employed full-time by Duff Corporation. The year Simpson reports AGI of $50,000 and has incurred the following medical expenses:
Dentist charges$ 900Physician’s charges1,800Optical charges500Cost of eyeglasses300Hospital charges2,100Prescription drugs250Over-the-counter drugs450Medical insurance premiums775
Calculate the amount of medical expenses that will be included with Simpson’s itemized deductions after any applicable limitations. Use the 2013 tax year information for reference.