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School

California State University, Northridge *

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Course

440

Subject

Accounting

Date

Feb 20, 2024

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png

Pages

1

Uploaded by patrickekim96

K 1 H N TBS-02277 st Qualifying Medical Item Expense Max is covered by the group medical insurance policy through his employer. His after-tax contribution for the premiums was $12.000 $1,000 per month for family coverage; his employer contributed $1,500 per month. Mindy charged a $200 payment to her chiropractor (which was not covered by their health insurance policy) on December 29, Year 1, on her personal credit card. She did not pay the balance on her card until January 15, Year 2. During Year 1, Jim spent the month of June at a drug-addiction treatment center in Dallas. The total payments were $5,000 for lodging at the center, $2,000 for meals, and $15,000 for medical care and treatment. Max paid $500 for contact lenses and $100 to the doctor who prescribed the contacts. In addition, he paid $4,000 to a physical therapist for treatment to address the effects of the on- the-job injuries. Max spent $20,000 during the year for an elevator in his house. Max has a heart problem and the elevator was recommended by Max's cardiologist so that Max would not have to climb the 6 stairs. The value of Max's home was $120,000 before the $16,200 elevator was installed and $125,000 after the elevator was installed. He paid $1,200 during the year for operation and upkeep of the elevator. Mindy spent $15,000 at a local hospital for a facelift that she 7 considered necessary to compete with younger employees at $0 her job. Amount of the medical expenses deduction on Schedule A, assuming $8,000 of total qualifying medical expenses. $5,750
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